Petrol leads increase in CPI

The Consumers Price Index (CPI) increased 1.6 percent in the June 2008 quarter, the highest since theJune 1990 quarter (1.8 percent), Statistics New Zealand said today.

Increases in transport prices made themost significant upward contribution to the CPI this quarter, in particular the increase in petrol.

Transport prices increased 4.9 percent in the June 2008 quarter, with the main contribution coming fromincreases in petrol prices (up 12.8 percent).

Other significant contributions came from diesel, domesticair transport, and international air transport.

Prices for the food group were up 2.2 percent in the June 2008 quarter, mainly due to price increases forgrocery food, vegetables, and restaurant meals and ready-to-eat food.

The housing and household utilities group recorded an overall increase of 1.2 percent.

The increase in thisgroup was mainly due to price increases in electricity.

For the year to the June 2008 quarter, the CPI increased 4.0 percent, following a rise of 3.4 percent for theyear to the March 2008 quarter.

The last time the CPI increased by more than 4 percent for the year wasthe June 1995 quarter (4.6 percent).

Higher prices for petrol (up 25.9 percent) made the most significant individual contribution to the increase inthe CPI for the year to June 2008.

If petrol prices had remained constant from the June 2007 quarter, theCPI would have risen 2.7 percent for the year to the June 2008 quarter