New Zealand’s second quarter (Q2) headline inflation, as per Consumer Price Index (CPI), rose to 7.3% YoY versus compared to 7.1% market consensus and 6.9% prior.

That said, the QoQ readings also strengthened to 1.7% versus 1.5% expected and 1.8% prior, per the latest release from Statistics New Zealand.

NZD/USD holds recovery

NZD/USD marked a quick uptick of around 15-pips before easing to 0.6160 just after the release of the key inflation data. The market reaction appears limited but helps the Kiwi pair to extend Friday’s rebound.

About New Zealand CPI

Consumer Price Index released by the Statistics New Zealand is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services . The purchase power of NZD is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. A high reading is seen as positive (or bullish) for the NZD, while a low reading is seen as negative.