NZD: NZ food prices fall, but inflation remains elevated – Commerzbank

Food prices in New Zealand fell by 0.4% in November compared to the previous month, which is a positive development for consumers. However, they remain 4.4% higher than a year ago, which continues to pose challenges for the central bank. This situation may have implications for monetary policy and reflect on interest rate trends. Moreover, the impact on the housing market and household spending projections can be significant. Thus, close attention should be paid to future inflation indicators and central bank decisions. While the market may adjust autonomously, a cautious stance is crucial as inflation stays elevated.