Japan Manufacturing Growth Accelerates in June as Orders Surge Despite Iran War Cost Pressures 
Singapore Inflation Stays Muted in May as Core CPI Misses Forecasts Ahead of MAS Review 
Oil Prices Slip as Iran Sanctions Relief and Hormuz Shipping Recovery Ease Supply Concerns 
Yen Near 40-Year Low as USD/JPY Approaches Key 162 Level, Raising Intervention Concerns 
France Faces Long Road to Economic Rebalancing as Weak Demand and High Rates Weigh, Says Citi 
Japan Keeps Markets Guessing as Yen Nears 40-Year Low, Raising Intervention Risks 
Asian Stocks Slide as AI Rally Pauses, South Korean Chipmakers Lead Regional Decline 
Wall Street Ends Mixed as Alphabet Slumps, Middle East Developments and Fed Outlook Weigh on Markets 
U.S.-Iran Diplomacy Helps Drive Gasoline Prices Down 15% From May Highs 
New Zealand’s ANZ Monthly Inflation Gauge lifted 0.4 percent m/m in December, to finish the quarter up 0.8 percent q/q. Annual inflation in the Gauge was stable at 3.2 percent y/y. Housing-related prices remain a persistent driver of inflation, and recent vigour in the housing market suggests that will continue, ANZ Research reported.
Seasonal demand for vehicle hires saw road passenger transport prices lift a solid 13 percent m/m, which together with persistent strength in housing-related prices account for over half the 0.4 percent m/m lift in the Gauge. Prices fell in just two of the 37 groups we monitor in the month – vehicle insurance and telecommunication services – but both declines were negligible.
Quarterly inflation in the Gauge came in at 0.8 percent q/q. The quarterly increase was led by accommodation services (up 12.8 percent q/q, very seasonal), rents (up 0.7 percent q/q), domestic airfares (up 9.6 percent q/q, also highly seasonal), and purchase of housing (up 0.8 percent q/q).
The quarterly lift is down from 1.2 percent q/q in September, but still suggests some upside risk to our current forecast for Q4 non-tradeable CPI inflation of 0.6% q/q. Recent revisions to GDP go some way to explaining this building price pressure, with the economy running a little hotter in late 2018 and early 2019 than previously thought.
However, the sharper deceleration in growth in the second half of last year suggests pipeline inflation pressures are unlikely to intensify and that non-tradable inflation will struggle to stay around 3 percent y/y, the report added.
