Petrol and airfares push up CPI

By Phil Boeyen, ShareChat Business News Editor

Monday 16th July 2001

New Zealand's consumers price index rose by 0.9% in the June quarter, pushing the annual inflation rate to 3.2% and reversing a fall of 0.2% in the March quarter.

Statistics New Zealand says the increase in the latest quarter was strongly influenced by higher prices for petrol and international airfares.

Together, these two items accounted for over half of the June quarter CPI increase, with transport prices rising 2.9%.

Private transport prices were influenced mainly by a 6.4% rise in petrol prices, which have increased by 36.9% over the past two years, while public transport prices were driven by higher international airfares, up 7.9% in the June quarter.

Food prices also contributed strongly to the overall CPI movement, rising 0.8%. A 3.9% increase is milk prices increased the upwards pressure, although this was tempered by lower fruit and vegetable prices, down 2.8% in the quarter.

Housing prices rose 0.2%, mainly due to increased dwelling insurance, while personal and health care was up 0.7% on the back of higher personal care and medical service costs.

Statistics New Zealand says on an annual basis the CPI is 3.2% higher than a year ago, and is the seventh consecutive annual increase in the index.

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