New Zealand Q3 Inflation Cools to 3.7%, Pushing NZD Below 0.57

The New Zealand dollar dipped slightly below 0.57 against the US dollar after third-quarter consumer price index data undershot expectations. Annual inflation moderated to 3.7%, below market forecasts of 3.8%, the prior quarter's 4.1%, and the Reserve Bank of New Zealand's 3.9% projection. Quarter-over-quarter CPI rose 0.7%, down from 1.5% in the second quarter and missing the 0.8% estimate. Despite easing price pressure, inflation remains above the RBNZ's 1% to 3% target band, with markets still pricing a 98% probability of an upcoming rate hike.