Inflation made it to 1%/year in the December quarter, the first time the consumers price index (CPI) has made it over 0.4%/year since December 2014 and the highest inflation rate since the 1.6%/year in the June 2014 quarter.
The index rose 0.4% from the September quarter to the December quarter, and 0.7% seasonally adjusted.
The index has been marginally higher in the last year – 4 straight quarterly rises after 3 falls in the previous 5 quarters.
Statistics NZ said, for the quarter:
- Transport prices rose 3.7%, influenced by higher petrol & air transport prices
- Housing-related prices rose – the purchase of new housing, excluding land, was up 1.4%
- Vegetable prices fell 15% (up 3.0% after seasonal adjustment).
And on annual change:
- Housing & household utilities increased 3.3%
- Transport prices decreased 1.0%
- Tradeable prices decreased 0.1%, while prices for non-tradeables increased 2.4%.
- The average price of 1 litre of 91 octane petrol was $1.82 in the December quarter, up from $1.75 in the September quarter.
The CPI measures the rate of price change of goods & services purchased by New Zealand households. Statistics NZ visits 2800 shops around New Zealand to collect prices for the CPI and check product sizes & features.
Statistics NZ prices senior manager Jason Attewell said today: “Household price inflation is up from a historical low of 0.1% for the December 2015 year. Non-tradeable goods & services showed a 2.4% increase, influenced by housing-related price increases.
“Housing-related prices continued to increase, up 3.3% in the December 2016 year. Prices increased for newly built houses excluding land (up 6.5%) and for housing rentals (up 2.0%).
“Housing-related prices in Auckland increased more than the national average, with new houses up 8.2% and rents up 3.2% from a year earlier.”
Attribution: Statistics NZ.