Consumer prices in New Zealand increased 1.1 percent year-on-year in the first three months of 2018 following a 1.6 percent increase in the previous quarter, matching market expectations. It was the slowest inflation since the third quarter of 2016.
Lower inflation was mainly explained by softer price increases in the groups of food (0.6 percent vs 2.3 percent in the previous period), health (0.9 percent vs 1.0 percent), transport (0.5 percent vs 1.5 percent). Also, prices in the education group fell 5.1 percent after climbing 2.4 percent in the previous quarter.
In contrast, prices advanced at a faster pace for housing & household utilities (3.1 percent vs 3.0 percent) and alcoholic beverages & tobacco (4.5 percent vs 4.2 percent), explained by the annual tobacco tax increase on 1 January 2018, with prices up 11 percent. Meantime, prices for recreation and culture rebounded modestly (0.1 percent) after declining 1.1 percent in the previous period.
On a quarterly basis, consumer prices rose 0.5 percent in the first quarter of 2018, up from a 0.1 percent increase recorded in the previous period and also matching market expectations.
4/19/2018 9:08:38 AM