NZ CPI hits 21 yr high of 5.3% on rising petrol, food, housing prices, Stats NZ says; Even without GST hike, inflation above RBNZ band.

New Zealand households are facing 21-year high inflation as rising transport, food and housing prices combined with last year’s GST increase to push annual inflation to 5.3% in the year to June, above market expectations, figures released by Statistics New Zealand show.
Markets had been expecting 5.1% annual inflation, as measured by Stats NZ’s consumer price index (CPI). Quarterly inflation of 1% in the three months to June 30 was above expectations for a 0.8% rise, building on rises of 0.8% in the March quarter, 2.3% in December, and 1.1% in the September quarter last year.
The figures have economists scrambling for when they now think the Reserve Bank will raise interest rates, with expectations for a December hike firming. The strongest comment today was from BNZ economist Stephen Toplis, who said the Reserve Bank should raise the Official Cash Rate by 50 basis points next Thursday.