CPI up on higher petrol and construction prices

CPI up on higher petrol and construction prices

18 July 2016

The consumers price index (CPI) rose 0.4 percent in the June 2016 quarter, Statistics New Zealand said today. This follows a 0.2 percent rise in the March 2016 quarter.

“Higher petrol and housing-related prices were countered by lower prices for meat and domestic air fares,” consumer prices manager Matt Haigh said.

Petrol prices showed the largest upward contribution, up 5.3 percent in the June 2016 quarter. This follows falls of 7.7 percent in the March 2016 quarter and 7.0 percent in the December 2015 quarter. The average price of 1 litre of 91 octane petrol was $1.78 in the June 2016 quarter, up from $1.69 in the March 2016 quarter.

Excluding petrol, the CPI rose 0.2 percent in the June 2016 quarter.

Housing and household utilities prices rose 1.0 percent in the June 2016 quarter. This rise was influenced by higher prices for newly built houses, excluding land (up 2.1 percent), electricity (up 1.8 percent), and rentals for housing (up 0.6 percent).

Meat prices (down 2.7 percent) made the largest downward contribution for the latest quarter, followed by lower prices for domestic air fares (down 9.9 percent). Domestic air fares have fallen 14 percent since the December 2015 quarter.

Annual CPI remains at 0.4 percent

The CPI inflation rate remained stable, at 0.4 percent, in the year to the June 2016 quarter.

Housing-related prices continued to be the main upward contributor, up 3.3 percent in the year. This increase was influenced by higher prices for newly built houses, excluding land (up 5.6 percent), and rentals for housing (up 2.3 percent).

Transport prices made the largest downward contribution, down 5.3 percent in the year as prices for petrol and domestic air fares fell.

"Petrol prices were 8.1 percent lower than a year ago, despite the increase this quarter as international crude oil prices recovered from their February low," Mr Haigh said. "Petrol makes up around 5 percent of the CPI basket."

Excluding petrol, the CPI showed a 0.8 percent increase in the year to the June 2016 quarter.

The CPI measures the rate of price change of goods and services purchased by New Zealand households. See the interactive CPI visualisation for further information.

For more information about these statistics:

• Visit Consumers Price Index: June 2016 quarter
•

ends

© Scoop Media