NZ Inflation Falls Short of Expectations in July

New Zealand's inflation rate came in softer than expected in July, according to data from Stats NZ. Fuel prices were the main contributor to the lower-than-expected reading, falling 5.7% over the month and 12.1% for diesel.

The annual fuel inflation rate remains high, however, with petrol up 15.1% and diesel up 34.9%. Food prices also contributed to the softer result, rising only 0.1% in July.

Annually, food inflation eased to 1.9%, down from a 2.5% rise in the year to June. The subdued demand backdrop and consumer caution are still having a moderating impact on inflation, according to ASB's Mark Smith.