New Zealand shares were down on Thursday while producer price index data from the US increased the odds of an already likely September Fed rate cut.

The S&P/NZX 50 Index fell 0.35% or 47.09 points to close at 13,229.15.

The Producer Price Index slipped 0.1% in July, compared with an expected 0.3% rise prior month's increase of 0.7%.

"The market has positioned for the Fed to ease in September and potentially ease three times this year. The benign outcome from the PPI tells you pricing expectations look about right," said Rodrigo Catril, currency strategist at National Australia Bank, as quoted by Reuters.

In domestic news, the Reserve Bank of New Zealand Governor Christian Hawkesby said the central bank is continuing to review the Insurance Act 2010, and its central projection to end the year with a 2.50% official cash rate could occur faster or slower depending on how the economic recovery evolves.

Also, New Zealand house prices are forecast to rise 5.4% in 2026, driven by stronger demand from owner-occupiers and investors as economic and labour market recovery boosts household formation, including migrants, said Westpac in a report.

New Zealand's well-balanced national housing market is witnessing a pivot, with property supply outpacing the population growth in major cities and emerging regional differences, Cotality said.

Further, New Zealand's Gross Domestic Product in the June quarter is expected to decline by 0.4%, impacted by seasonal distortions, Westpac (NZE:WBC) said.

In corporate news, Scott Technology (NZE:SCT) expects fiscal 2025 revenue to be in the range of NZ$270 million to NZ$275 million, down from the actual result of AU$276 million last year.

Meridian Energy's (ASX:MEZ, NZE:MEL) retail sales volumes rose to 913 gigawatt hours (GWh) in August from 810 GWh a year earlier.