Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Construction Costs Maintain Upward Pressure on CPI

Construction Costs Maintain Upward Pressure on CPI

The Consumers Price Index (CPI) increased by 0.5 percent in the September 2003 quarter, according to Statistics New Zealand. This follows no overall change in the CPI in the June quarter.

With prices rising by 2.0 percent, the housing group made the most significant upward contribution to the CPI for the fifth consecutive quarter. The increase in the September quarter also reflects higher prices for petrol, alcohol and electricity. These increases were partly offset by lower international airfares.

The rise in the housing group in the September 2003 quarter was mainly due to higher prices for the purchase and construction of new dwellings, and the impact of annual increases in local authority rates. Prices for the purchase and construction of new dwellings rose by 1.8 percent.

Construction prices have increased for 18 consecutive quarters, and the annual increase of 6.9 percent is the largest since the June 1996 quarter. Forty-four percent of surveyed construction prices rose in the September 2003 quarter, with 81 percent of surveyed builders citing rising costs of construction materials as a reason for all or part of the increase.

Local authority rates increased by 7.2 percent in the September 2003 quarter and made the same upward contribution to the housing group as the increase in purchase and construction of new dwelling costs. Local authority rates are surveyed annually, in line with the setting of rates by local and regional councils.

Household operation costs rose by 0.6 percent in the September 2003 quarter, mainly due to an increase of 3.2 percent in electricity prices. The latest rise in electricity prices follows an increase of 1.8 percent in the June 2003 quarter. Electricity prices are now 6.5 percent higher than a year ago, due to widespread tariff increases.

Tobacco and alcohol prices rose by 1.3 percent in the September 2003 quarter, mainly driven by the increase in excise duty on alcohol on 1 June 2003.

Transportation prices fell 1.6 percent in the September 2003 quarter, mainly driven by a 12.6 percent fall in the price of international airfares. Partly offsetting this fall was a 7.1 percent increase in petrol prices.

On an annual basis, the CPI increased by 1.5 percent. The most significant contribution to the annual change came from the 6.9 percent rise in prices for the purchase and construction of new dwellings.

Brian Pink

Government Statistician

© Scoop Media

Business Headlines | Sci-Tech Headlines


Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>


Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>


CO2 And Water: Fonterra's Environment Plans

Federated Farmers support Fonterra’s bold push to get to zero emissions of CO2 on the manufacturing side of the Co-operative, both in New Zealand and across its global network. More>>


Fisheries: Decision To Delay Monitoring ‘Fatally Flawed’

Conservation group representatives say a decision by the new Minister of Fisheries, Stuart Nash, to delay implementation of camera monitoring of fishing efforts in New Zealand is ‘fatally flawed’. More>>


Kaikōura Quakes: One Year On

State Highway One and the railway were blocked by damage and slips and the Inland Road suffered significant damage. Farms, homes and businesses suffered building and land damage. Power and internet went down, drinking water systems, sewage systems and local roads were all badly affected... More>>