Higher food prices push up CPI

The Consumers Price Index (CPI) increased 0.7 percent in the March 2008 quarter, Statistics New Zealandsaid today.

Food prices made the most significant upward contribution to the CPI this quarter.

Food prices increased 1.8 percent in the March 2008 quarter, with the main contribution coming fromincreases in grocery food prices (up 3.6 percent).

Within the grocery food subgroup the most significantcontributions came from cheese, bread, and butter.

Prices for the housing and household utilities group were up 1.0 percent in the March 2008 quarter, mainlydue to price increases for actual rentals for housing (up 1.2 percent), purchase of new housing (up 0.9percent) and electricity (up 0.8 percent).

The transport group recorded an overall increase of 0.8 percent.

The increase in the transport group wasmainly due to price increases for petrol (up 4.0 percent), which was mostly offset by lower prices forinternational air transport (down 8.6 percent).

The recreation and culture group made a downward contribution to the CPI.

Recreation and cultureprices recorded an overall decrease of 1.2 percent, with the main contribution coming from lower prices foraudio visual and computing equipment (down 3.6 percent) and overseas package holidays (down 5.7percent).

For the year to the March 2008 quarter, the CPI increased 3.4 percent, following a rise of 3.2 percent for theyear to the December 2007 quarter.

Higher prices for petrol (up 20.5 percent) made the most significantindividual contribution to the increase in the CPI.

If petrol prices had remained constant from the March2007 quarter, the CPI would have risen 2.5 percent for the year to the March 2008 quarter.