By Lucy Craymer
WELLINGTON (Reuters) -New Zealand's annual inflation accelerated in the third quarter, coming in at 3.0%, in line with analysts' forecasts and at the top end of the central bank's target range, official data showed on Monday.
The consumer price index rose 1.0% in the third quarter from the previous quarter, Statistics New Zealand said. That was faster than the reading of 0.5% in the second quarter.
Economists polled by Reuters had expected a 1.0% quarterly rise.
The Reserve Bank of New
Zealand targets annual inflation between 1% and 3% over the medium term.
Statistics New Zealand attributed the third-quarter result to rises in electricity and rent, as well as increases in local government taxes.
"Annual electricity increases are at their highest since the late 1980s, when there were several major reforms in the electricity market," Statistics New Zealand prices and deflators spokesperson Nicola Growden said.
RBNZ, which in August forecast annual inflation at 3% for the quarter, cut the cash rate by 50 basis points to 2.5% at its latest meeting, citing concerns about weakness in the economy.
It noted at its last review earlier this month that inflation was ticking higher but said spare capacity in the economy meant it expected it to return to 2% by mid 2026.
Annual non-tradeable inflation was 3.5%, compared with 3.7% in the second quarter.
Uncertainty around U.S. tariff policies and geopolitical tensions continues to influence inflation expectations and monetary policy decisions, analysts said.
(Reporting by Lucy Craymer; Editing by Sam Holmes, Deepa Babington and Edmund Klamann)
