New Zealand Inflation Rate Matches Expectations
Consumer prices in New Zealand increased 0.4 percent year-on-year in the first three months of 2016, accelerating from a 0.1 percent rise in the previous quarter. Figures came in line with forecasts, due to higher housing cost.
4/17/2016 11:53:34 PM
Housing-related prices continue to be the main upward contributor, up 3.0 percent in the year, led by higher prices for rent (up 2.3 percent) and newly built houses excluding land (up 5.0 percent). Transport prices made the largest downward contribution for the year, due to petrol prices (down 5.1 percent). Excluding petrol, the CPI rose 0.7 percent.
On a quarterly basis, consumer prices went up 0.2 percent, recovering from a 0.5 percent decline in the previous period. Cigarette and tobacco prices showed the highest upward contribution, up 9.4 percent in the March 2016 quarter following a rise in excise duty in January. Excluding cigarettes and tobacco, the CPI showed a 0.1 percent fall. Petrol prices (down 7.7 percent) made the largest downward contribution for the quarter. The average price of one litre of 91 octane petrol fell to $1.69 in the March 2016 quarter, compared with $1.84 in the previous quarter. Low oil prices, along with competition in the market, also contributed to lower airfares. International airfares were down 12 percent and domestic airfares fell 4.8 percent.