New Zealand Q3 Inflation Slows to 3.7%, Still Above Central Bank Target Range

New Zealand's annual inflation slowed to 3.7% in the third quarter, below analysts' forecasts but above the Reserve Bank's 1%-3% target range, official data showed on Thursday. The consumer price index rose 0.7% from the previous quarter, undershooting the 0.8% consensus estimate. The New Zealand dollar dipped to $0.5692 after the release. Petrol prices were the largest contributor to inflation despite easing from the June quarter, while residential construction costs also rose. The 3.7% figure came in below the central bank's 3.9% forecast and marks the last major data release ahead of its monetary policy review next week. The Reserve Bank has raised the cash rate twice this year to 2.75% as it seeks to return inflation to the midpoint of its target band. The data arrives amid a closely contested November 7 general election, with voters pressing parties for relief from a sluggish economy and historically high inflation.