New Zealand Inflation Gains 0.1% On Quarter, +1.6% On Year In Q4

Consumer prices in New Zealand expanded 0.1 percent on quarter in the fourth quarter of 2017, Statistics New Zealand said on Thursday.

That was shy of expectations for an increase of 0.4 percent and down from 0.5 percent in the three month prior.

Transport prices rose 3.2 percent, driven by higher petrol prices (up 6.1 percent), and international air fares (up 11 percent).

Housing and household utilities rose 0.6 percent, influenced by a 1.3 percent rise in construction.

Food prices fell 1.7 percent, with lower prices for vegetables (down 19 percent).

Prices fell across a range of retail goods, including new cars, clothing, and appliances.

“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.

On a yearly basis, consumer prices gained 1.6 percent – again missing forecasts for 1.9 percent, which would have been unchanged.

The average price for 1 liter of 91 octane petrol was NZ$1.94 in the December 2017 quarter, up from NZ$1.83 in the September 2017 quarter, and NZ$1.82 in the December 2016 quarter.

The average price of a pack of 25 cigarettes was NZ$31.68 in the December 2017 quarter, up from NZ$28.82 in the December 2016 quarter.

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