In the third quarter of 2013, New Zealand annual inflation rate accelerated to 1.4 percent, the highest rate in six quarters, due to higher cost of housing and household utilities.
The main upward contribution came from prices for housing and household utilities, which were up 3.2 percent, reflecting increases for housing rentals (up 2.0 percent), newly built houses (up 4.1 percent), and property maintenance services (up 5.1 percent).
Individually, the highest influence came from cigarette and tobacco prices, which increased 12 percent, reflecting a rise in excise duty in January of 2013. Petrol prices were up 3.7 percent for the year.
The main downward contributions came from cheaper audio-visual and computing equipment (down 11 percent), and from telecommunications services (down 3.9 percent), reflecting better-value Internet and cellphone services.
Apart from petrol, most of the key upward contributions came from non-tradable goods and services (which do not face foreign competition). For tradables, the strong New Zealand dollar helped to dampen the prices of imported goods and services.
Quarter-on-quarter, the inflation rate rose 0.9 percent. More than half of the rise came from higher petrol prices and seasonally high vegetable prices.
10/15/2013 11:06:35 PM