NZ Economy Shows Mixed Signals: Students Boom, Inflation Subdued
The latest market update from New Zealand shows mixed signals for the economy and financial markets. The central bank's data indicates that overseas student numbers have reached a record high, with an almost +10% increase from last year. This growth sector is likely to bring in significant revenue for the country.
However, other indicators are less promising. Food inflation has slowed down significantly, with prices rising only +1.9% in July compared to the same period last year. Rents have also fallen by -0.6%, and even electricity prices, which had been sharply higher than a year ago, have started to decline.
On the other hand, retail sales have seen a boost, with a +1.3% increase in July compared to June. Core retail subsector saw a +2.2% rise on the same basis, while exports are also showing signs of strength, particularly in the electronic equipment sector.