New Zealand posted its first monthly decline in food prices since early 2022, adding to signs that inflation pressures are continuing to ease.
The food price index fell 0.5% in July from June, Statistics New Zealand said Friday in Wellington. That’s the first decline since February 2022. Annual food inflation slowed to 9.6% from 12.5%, and is the weakest since September.
New Zealand’s dollar extended declines after the report as investors expect headline inflation will continue to decline, easing pressure on the central bank to raise interest rates further. The Reserve Bank reviews policy next week, and economists expect it to keep the Official Cash Rate unchanged at 5.5%.
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