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

 

Construction Prices Drive CPI Increase

Construction Prices Drive CPI Increase

The Consumers Price Index (CPI) increased by 0.7 percent in the December 2003 quarter, according to Statistics New Zealand. The housing group continues to make the most significant upward contribution to the CPI, with prices rising by 2.2 percent. The increase in the December quarter also reflects higher prices for electricity and international air travel. These increases were partly offset by lower petrol prices.

The rise in the housing group in the December 2003 quarter was mainly due to higher prices for the purchase and construction of new dwellings, which increased by 3.3 percent. Construction prices have increased for 19 consecutive quarters and the annual increase of 8.5 percent is the largest since the June 1995 quarter.

Sixty-one percent of surveyed construction prices rose in the December 2003 quarter compared with 44 percent in the September quarter. The main reasons cited for increases in the December 2003 quarter were rising labour costs, higher prices for construction components, increased subcontractors' charges and rises in the cost of fittings.

Household operation costs rose by 0.7 percent in the December 2003 quarter, mainly due to an increase of 3.8 percent in electricity prices. The latest rise in electricity prices follows an increase of 3.2 percent in the September 2003 quarter. Electricity prices are now 9.3 percent higher than a year ago, due to widespread tariff increases. Partly offsetting the rises in the December 2003 quarter was a 1.7 percent fall in prices of household appliances and equipment. Alcohol prices rose by 0.6 percent in the December 2003 quarter, reflecting higher prices for spirits and liqueurs, beer and wine.

Transportation prices remained unchanged in the December 2003 quarter. A 3.2 percent rise in international air travel prices was offset by falls in petrol prices of 2.1 percent and used car prices of 0.7 percent.

On an annual basis, the CPI increased by 1.6 percent. The most significant contribution to the annual change came from an 8.5 percent rise in prices for the purchase and construction of new dwellings.

Brian Pink

Government Statistician

END

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Mycoplasma Bovis: More Properties Positive

One of the latest infected properties is in the Hastings district, the other three are within a farming enterprise in Winton. The suspect property is near Ashburton. More>>

ALSO:

Manawatū Gorge Alternative: More Work Needed To Choose Route

“We are currently working closely and in partnership with local councils and other stakeholders to make the right long-term decision. It’s vital we have strong support on the new route as it will represent a very significant long-term investment and it will need to serve the region and the country for decades to come.” More>>

ALSO:

RBNZ: Super Fund Chief To Be New Reserve Bank Governor

Adrian Orr has been appointed as Reserve Bank Governor effective from 27 March 2018, Finance Minister Grant Robertson says. More>>

ALSO:

ScoopPro: Helping PR Professionals Get More Out Of Scoop

Scoop.co.nz has been a fixture of New Zealand’s news and Public Relations infrastructure for over 18 years. However, without the financial assistance of those using Scoop in a professional context in key sectors such as Public Relations and media, Scoop will not be able to continue this service... More>>

Insurance: 2017 Worst Year On Record For Weather-Related Losses

The Insurance Council of New Zealand (ICNZ) announced today that 2017 has been the most expensive year on record for weather-related losses, with a total insured-losses value of more than $242 million. More>>

ALSO: