Australian and New Zealand Inflation Monitor

Inflation in Australia and New Zealand is seeing sharp upward pressure from fuel prices, though underlying measures and long-term expectations remain relatively stable. Goldman Sachs forecasts Australian headline CPI to remain at 4.6% yoy in April while New Zealand fuel prices saw monthly gains of over 12%.

Key Takeaways

• 1.Australia's headline inflation accelerated to 4.6% yoy in March, with a forecast of 0.8% mom for April driven by fuel and medical insurance.
• 2.Indirect effects of higher oil prices are emerging in Australian sectors like takeaway meals and new dwelling costs via fuel surcharges and input costs.
• 3.New Zealand inflation is being heavily skewed by fuel, with monthly prices up 1.2% mom in April, though non-fuel prices remain soft.

Table of Contents

• Australia
• Automotive fuel
• Materials and chemical costs
• Airfares and holiday travel
• Housing
• Market services
• Inflation expectations
• New Zealand
• Disclosure Appendix

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