NZ inflation outstrips OECD average

New Zealand's inflation outstripped the OECD average in November, figures out today show.

New Zealand reported annual inflation of 3.4 per cent in November, against an OECD (Organisation for Economic Co-operation and Development) total average of 2.6 per cent.

The OECD average consumer price inflation (CPI) was down from 3.0 per cent in October, due to a slowdown in energy prices.

CPI was up 3.5 per cent in the United States in the November year, 2.4 per cent in the United Kingdom, and 3.0 per cent in Australia.

Excluding food and energy, the average CPI for the OECD's 30 member nations was up 1.9 per cent year-on-year in November, compared to 1.8 per cent in October.

In New Zealand annual consumer price inflation excluding food and energy was up 2.7 per cent in November.

New Zealand's total CPI annual growth annual rate of 3.4 per cent breached the Reserve Bank's target band of 1 to 3 per cent for the first time since the June quarter of 2001.

The Reserve Bank raised New Zealand's official cash rate (OCR) twice between the release of the last CPI figures and the end of the year.

The OCR is now 7.25 per cent, the highest key interest rate in the industrialised world.

- NZPA