New Zealand Inflation Rate Decreases to 1% in Q3


The CPI increased 1.0 percent year-on-year in the third quarter of 2014, after rising 1.6 percent in the previous period. It is the lowest rate in five quarters due to a fall in transport and food prices.

Year-on-year, the main individual downward contributions came from prices for audio-visual and computing equipment (down 9.8 percent) and alcoholic beverages (down 2.0 percent). Petrol cost fell 1.8 percent and consumers paid 6.1 percent less for vegetables.

In contrast, about four-fifths of the annual increase came from housing and household utilities (up 3.4 percent). Rentals for housing (up 2.2 percent) and purchase of newly built houses excluding land (up 4.8 percent) increased. Prices for electricity (up 3.7 percent), property maintenance (up 3.7 percent), and local authority rates (up 4.1 percent) also increased.

Alcoholic beverages and tobacco prices increased 2.7 percent. Cigarettes and tobacco increased 11.6 percent, influenced by a rise in excise duty in January this year.

On a quarter-on-quarter basis, consumer prices rose 0.3 percent, the same rate recorded in the previous quarter. Housing and household utilities prices (up 1.0 percent) contributed about three-quarters of the rise, reflecting higher local authority rates (up 3.8 percent), rentals for housing (up 0.6 percent), and purchase of newly built houses excluding land (up 1.1 percent).

New Zealand Inflation Rate Decreases to 1% in Q3


Statistics New Zealand | Ricardo Martins | ricardo.martins@tradingeconomics.com
10/22/2014 11:25:05 PM