The consumers price index (CPI) inflation rate was 0.2 percent in the September 2016 quarter, Statistics New Zealand said today. This follows inflation of 0.4 percent in the June 2016 quarter.
“Higher housing-related prices were countered by lower transportation prices,” consumer prices manager Matt Haigh said.
Housing and household utilities prices rose 1.1 percent in the September 2016 quarter. This rise was influenced by higher prices for purchase of new housing, excluding land (up 2.0 percent), and local authority rates (up 3.0 percent).
Transport prices (down 3.0 percent) made the largest downward contribution for the latest quarter. Other private transport services fell 28 percent, reflecting cheaper vehicle relicensing fees implemented from 1 July. Petrol prices fell 1.7 percent, with the average price of a litre of 91 octane petrol at $1.75. Prices for new and used cars also fell.
Annual CPI inflation rate 0.2 percentCPI inflation was 0.2 percent in the year to the September 2016 quarter. This compares with 0.4 percent annually for both the June and March 2016 quarters, and the 16-year low of 0.1 percent in the year to December 2015.
Housing-related prices continued to be the main upward contributor, up 3.2 percent in the year. This increase was influenced by higher prices for purchase of new housing, excluding land (up 6.3 percent), and rentals for housing (up 2.1 percent). Property maintenance prices, such as painting and plumbing, have also increased steadily throughout the year and are now 3.1 percent higher than a year ago.
Transport prices made the largest downward contribution for the year, down 6.7 percent as prices for petrol and vehicle relicensing fell.
"Petrol prices in the September 2016 quarter were 11 percent lower than a year ago," Mr Haigh said. Petrol makes up around 5 percent of the CPI basket.
Excluding petrol, the CPI showed a 0.8 percent increase in the year to the September 2016 quarter.
The CPI measures the rate of price change of goods and services purchased by New Zealand households. See the interactive CPI visualisation for further information.
Consumers Price Index: September 2016 quarter – for more data and analysis