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

 


100 years measuring the prices of tapioca, tripe, and TVs

100 years measuring the prices of tapioca, tripe, and televisions –


16 July 2014


Prices have risen in New Zealand by 7,500 percent, but it’s taken a century to do it.

For 100 years Statistics NZ has been measuring consumer prices and over the century a lot has changed in terms of what we buy, the quantity we purchase, and the prices we pay.

The goods and services measured in the consumers price index (CPI) have changed markedly over the 100 years reflecting the changes in New Zealand society.

“In 1914 we collected prices for sago, tapioca, treacle, and tripe. Washing machines were added to the CPI in 1949 followed by refrigerators in 1955, televisions in 1965, and home computers in 1988,” prices manager Chris Pike said.

While the items measured in the CPI have changed over time, so have the quantities. A century ago, 25-pound bags of flour and 56-pound bags of sugar were measured in the CPI – today both are measured as 1.5-kilo bags.

Just like the items and the quantities, the prices of consumer items have also changed a lot over the century, with an increase of 7,500 percent.

“A basket of goods and services that cost £1 in 1914 would cost about $151 now if the prices of those goods and services had increased in line with the CPI,” said Mr Pike.

Over the 100 years, annual inflation averaged 4.4 percent but it has varied across the decades. Annual inflation peaked at 18.9 percent in the June 1987 quarter soon after GST was introduced, while during the 1990s it averaged 1.8 percent.

The CPI has been used and continues to be used by the Reserve Bank to guide monetary policy, by government to adjust welfare benefit rates, and by employers and employees in wage negotiations.

An interactive time series visualisation is available on the Statistics NZ website showing how CPI annual inflation has tracked over the century. It also includes contextual information about influences on the CPI. We also have an interactive basket visualisation showing when selected goods and services were added or removed from the CPI.

To mark the 100-year anniversary we digitised historical CPI information dating back to the early 1900s.

Key facts

• Over the past century, consumer prices increased about 7,500 percent. This means that a basket of goods and services that cost the equivalent of £1 in 1914 would cost about $151 now.

• Over the 100-year period, annual inflation averaged 4.4 percent.

• In the 1960s, annual inflation averaged 3.3 percent, in the 1970s 12.0 percent, the 1980s 11.4 percent, the 1990s 1.8 percent, and the 2000s 2.7 percent.

• New Zealand had continuous double-digit annual inflation from the December 1973 quarter to the March 1983 quarter.

• Annual inflation peaked at 18.4 percent in the year to March 1980 quarter, then again at 18.9 percent in the year to the June 1987 quarter, soon after GST was introduced.

• Consumer prices fell 20 percent in the five years to the September 1934 quarter, during the Great Depression.


For more information about these statistics:


• Visit 100 years of the CPI

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

China Shopping: NZ-China FTA Upgrade Agreed Among Slew Of New Deals

New Zealand Prime Minister Bill English and China Premier Li Keqiang signed off a series of cooperation deals spanning trade, customs, travel and climate change and confirmed commencement of official talks on an upgrade to the nine-year old free-trade agreement between the two countries. More>>

ALSO:


Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news