Housing Costs Drive Inflation

18 April 2007

Housing Costs Drive Inflation

The Consumers Price Index (CPI) increased 0.5 percent in the March 2007 quarter, Statistics New Zealand said today. Housing and household utilities prices made the most significant upward contribution to the CPI this quarter.

Housing and household utilities prices were up 1.1 percent in the March 2007 quarter, mainly due to price increases for actual rentals for housing (up 1.0 percent), and purchase of new housing (up 1.3 percent).

Food prices increased 1.1 percent in the March 2007 quarter, with the main contributions coming from increases in poultry prices (up 15.2 percent), and grocery foods (up 1.0 percent).

Of the remaining nine groups five recorded increases: miscellaneous goods and services (up 1.2 percent), education (up 3.4 percent), alcoholic beverages and tobacco (up 1.0 percent), health (up 1.1 percent) and communication (up 0.1 percent). Four groups recorded price falls: recreation and culture (down 0.7 percent), household contents and services (down 1.0 percent), transport (down 0.2 percent) and clothing and footwear (down 0.5 percent).

Over the 12 months to the March 2007 quarter, the CPI increased 2.5 percent, following a rise of 2.6 percent for the year to the December 2006 quarter.

Dallas Welch
Acting Government Statistician

ENDS

More Data...Hot Off The Press: Consumers Price Index (PDF)

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