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CPI inflation rate back over 1 percent
Embargoed until 10:45am  –  26 January 2017

Consumers Price Index: December 2016 quarter  –  Media Release

The consumers price index (CPI) inflation rate was 1.3 percent in the year to the December 2016 quarter, Statistics New Zealand said today.

"This is the first time in over two years that price increases for household purchases have been over 1 percent", prices senior manager Jason Attewell said. "Household price inflation is up from a historical low of 0.1 percent for the December 2015 year".

Prices for tradable goods and services were 0.1 percent lower in the year to December 2016. Despite higher quarterly prices, petrol and international airfares were cheaper than a year ago. Non-tradable goods and services showed a 2.4 percent increase, influenced by housing-related price increases.

Housing-related prices continued to increase, up 3.3 percent in the December 2016 year. Prices increased for newly built houses excluding land (up 6.5 percent) and for housing rentals (up 2.0 percent).

"Housing-related prices in Auckland increased more than the national average, with new houses up 8.2 percent and rents up 3.2 percent from a year earlier," Mr Attewell said.

Quarterly prices rise 0.4 percent

The CPI rose 0.4 percent in the December 2016 quarter, following a 0.3 percent rise in the September 2016 quarter. After adjusting for seasonal effects, the CPI was up 0.7 percent.

“Higher prices for petrol, air fares, and new house builds were partly offset by lower prices for food and furniture,” Mr Attewell said.

Petrol prices made the largest upward contribution for the quarter, up 4.1 percent. The average price of a litre of 91 octane petrol in the December 2016 quarter was $1.82, up from $1.75 in the September quarter.

Food prices fell 1.2 percent in the latest quarter, with seasonally lower fruit and vegetable prices being partly offset by higher prices for dairy products.

Further information of how different household groups experience inflation will be published on 9 February in Household Living-cost Price Indexes: December 2016 quarter.

Ends

For media enquiries contact: Jason Attewell, Wellington 021 958 006, info@stats.govt.nz
Authorised by Mark Sowden, Acting Government Statistician, 26 January 2017

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