New Zealand Inflation Slows in Q3, Easing Rate Hike Expectations

New Zealand's annual inflation rate fell to 5.6% in Q3, lower than expected and indicating tightening cycle may be ending.

Consumer prices rose 1.8% quarter-on-quarter, less than forecast, adding to signs of slowing inflation.

Investors pared back bets on further rate hikes after the data, with odds of a November increase falling.

Economists said RBNZ's tightening is working to curb price pressures, though domestic inflation remains high.

Non-tradables inflation slowed to 6.3% but was still above RBNZ's projection, indicating domestic price pressures persist.