New Zealand’s consumers price index (CPI) rose 0.4 percent for the September 2011 quarter, Statistics New Zealand said on Tuesday.
"The 0.4 percent increase in the CPI reflects higher food prices and local authority rates, countered by falls in transport and communication prices, " Statistics NZ’s prices manager Chris Pike said.
The housing and household utilities group rose in the September 2011 quarter (up 0.7 percent), reflecting higher local authority rates (up 4.1 percent) and rentals for housing (up 0.5 percent).
Food prices rose 1.7 percent in the September 2011 quarter. Higher than usual prices for vegetables (up 18 percent) were responsible for much of the increase. Higher vegetable prices were influenced by a supply shortage due to the Queensland floods earlier in 2011.
Transport prices fell 1.0 percent in the September 2011 quarter, influenced by lower prices for petrol (down 3.3 percent) which briefly dipped below NZD2 (USD1.64) per litre in August after peaking around NZD2.20 in April. International air fares also fell (down 3.7 percent), reflecting cheaper flights to Asia.
Communication prices fell in the September 2011 quarter (down 3.6 percent), reflecting increased data caps for broadband plans and cheaper international calling rates.
In the year to the September 2011 quarter, the CPI rose 4.6 percent, including a 2.3 percent increase in the December 2010 quarter when GST rose from 12.5 to 15 percent. Key contributions to the rise came from transport (up 8.8 percent), food (up 6.2 percent), housing and household utilities (up 3.7 percent), and alcoholic beverages and tobacco (up 5.6 percent).
On an annual basis, petrol prices increased (up 18 percent), while the price of cigarettes and tobacco (up 12 percent), vegetables (up 18 percent), purchase of new housing (up 3.7 percent), electricity (up 4.6 percent), and local authority rates (up 6.6 percent) also rose.
The September 2011 quarter CPI was calculated using an updated basket of goods and services, and updated expenditure weights. Statistics NZ has reselected and updated the relative importance of the basket of goods and services to ensure it continues to reflect household spending patterns. The CPI is reviewed every three years. For more information see Consumers price index review: 2011.
The CPI measures the rate of price change of goods and services purchased by New Zealand households. Statistics NZ visits 3,000 shops across New Zealand to collect prices for the CPI and check product sizes and features.