New Zealand Inflation Rate Steady at 0.4% in Q3


Consumer prices in New Zealand increased by 0.4 percent year-on-year in the third quarter of 2015, the same pace as in the previous period and above market expectations of 0.3 percent growth. The annual increase was influenced by higher housing-related cost, while lower petrol prices were the main downward contributor.

Annual non-tradable inflation was 1.5 percent. This was the smallest annual increase in nontradables since the December 2001 quarter when it also increased 1.5 percent. Purchase of newly built houses excluding land (up 5.5 percent nationally and 8.5 percent in Auckland), rentals for housing (up 2.3 percent), and local authority rates (up 5.9 percent) all rose in the year to the September 2015 quarter.

Cigarettes and tobacco (up 13 percent) made a significant upward contribution to the latest annual increase, influenced by the excise duty rise in January 2015. The main downward contribution came from lower prices for other private transport services (down 24 percent) and telecommunication services (down 4.2 percent).

Non-tradables excluding government charges and tobacco rose 1.6 percent in the year to the September 2015 quarter, compared with 1.5 percent in the years to both the June 2015 and March 2015 quarters.

The tradable component decreased 1.2 percent in the year. Lower prices for petrol (down 6.8 percent), milk, cheese, and eggs (down 5.7 percent), and international air fares (down 6.5 percent) made the main downward contributions. The main upward contributions came from higher prices for fruit, package holidays, and furniture and furnishings.

On a quarterly basis, the consumers price index rose 0.3 percent in the September 2015 quarter, following a 0.4 percent growth in the previous quarter. Higher housing-related prices, and seasonally higher vegetable and package holiday prices, were partly countered by lower vehicle relicensing fees.

New Zealand Inflation Rate Steady at 0.4% in Q3


Statistics New Zealand | Joana Ferreira | joana.ferreira@tradingeconomics.com
10/15/2015 11:16:13 PM