New Zealand Inflation Rate Rises to 0.3% in Q2

Consumer prices in New Zealand increased 0.3 percent year-on-year in the second quarter of 2015, up from 0.1 percent in the previous period mostly due to rise in housing-related cost and cigarettes and tobacco.

Non-tradable goods and services increased 2.0 percent, the lowest annual increase since the December 2001 quarter. The main contributor to the rise was cigarettes and tobacco (up 14 percent), influenced by the increase in excise duty in January 2015. Housing and household utility prices were up 2.5 percent in the year, with higher prices for newly built houses excluding land  up 5.3 percent), housing rentals (up 2.3 percent), and electricity (up 3.9 percent). While lower prices for telecommunication services (down 4.3 percent) made the main downward contribution.

The prices of tradable goods and services (which face foreign competition) decreased 2.0 percent in the year. The main downward pressue came from: petrol (down 7.4 percent), audio-visual and computing equipment (down 12 percent), vehicles (down 3.8 percent), and international air fares (down 6.3 percent). Higher prices were reported for: confectionery, nuts, and snacks, books, and fruit.

Excluding cigarettes and tobacco, the CPI decreased 0.1 percent; excluding petrol, the CPI increased 0.7 percent over the year.

On a quarterly basis, the consumers price index rose 0.4 percent in the June 2015 quarter, following a 0.3 percent fall in the March 2015 quarter. It was the highest value since the third quarter of 2013. The increase was caused by an 8.8 percent rise in petrol prices, influenced by higher international crude oil prices and a weaker New Zealand dollar. Without petrol, the CPI rose 0.3 percent.

New Zealand Inflation Rate Rises to 0.3% in Q2

Statistics New Zealand | Yekaterina Guchshina |
7/16/2015 12:43:18 AM