The relatively flat result this quarter leaves the consumers price index (CPI) inflation rate at 1.6 percent for the December 2017 year. Inflation was 1.9 percent for the September 2017 year.

Inflation is a key measure for the Reserve Bank in setting interest rates and is commonly used in adjusting pay rates and other contracts.Petrol price rise leads quarterly inflation

Transport rose 3.2 percent in the December 2017 quarter, influenced by higher petrol prices (up 6.1 percent) and international air fares (up 11 percent).

"Petrol prices were up in the December quarter, following two quarters of falls," prices senior manager Jason Attewell said. "Rising oil prices and a falling exchange rate pushed prices up sharply between July and November this year. The average price for 91 octane petrol hit $1.94 in the December 2017 quarter, up from $1.83 in the September 2017 quarter."

There was regional variation in petrol price movements in the December quarter, with Auckland prices up 5.8 percent while Wellington and Canterbury prices rose by more, up 7.1 and 6.8 percent, respectively.

Continue here to read full article from STATSNZ    |  January 25, 2018   |||