New Zealand Inflation Rate Rises to 1.6% in Q2

The CPI increased 1.6 percent in the second quarter of 2014, following a 1.5 percent rise in the previous period, mainly due to higher housing cost.
Statistics New Zealand | Joana Taborda | 7/16/2014 12:00:43 AM
Half of the latest annual increase came from housing and household utility prices, which increased 3.4 percent. The price of buying a newly built house without land increased 4.6 percent for the year. In Auckland the increase was 5.5 percent and in Canterbury it was 6.4 percent,

In addition to newly built houses, housing rentals (up 2.2 percent), electricity (up 4.5 percent), property maintenance (up 3.4 percent), and local authority rates (up 4.1 percent) also went up.

Cigarette and tobacco prices increased 10.2 percent, reflecting an increase in excise duty in January. Petrol prices increased 2.8 percent for the year.

The main downward contribution for the year came from cheaper audio-visual and computing equipment (down 9.8 percent). Vehicle prices (down 2.9 percent) also decreased, reflecting lower prices for both new and second-hand cars. The strong New Zealand dollar has had a downward influence on the retail prices of internationally traded goods, including cars and appliances.

On a quarter-on-quarter basis, consumer prices rose 0.3 percent, the same rate recorded in the previous period. Higher housing-related prices and vegetable prices were partly countered by cheaper package holidays, cars, and fruit.

New Zealand Inflation Rate Rises to 1.6% in Q2