Rising producer prices and declining retail sales in New Zealand signal mounting inflation pressures amid weakening consumer demand.
New Zealand’s producer input prices surged 1.4% in the first quarter, reversing a 0.5% decline in the prior period. Output prices rose 0.8%, up from 0.1% in Q4, indicating producers are absorbing some cost increases rather than passing them fully to consumers.
Electronic card retail sales fell 1.3% in April, erasing a 0.7% gain in March, while total card spending dropped 1.6%. Annual retail sales growth slowed to 2.0%, reflecting softer consumer activity.
The data highlights a divergence between rising production costs and sluggish demand, complicating monetary policy decisions as inflationary pressures build.