Vehicle fuel prices lower CPI

The Consumers Price Index (CPI) decreased 0.5 percent in the December 2008 quarter, Statistics New
Zealand said today.

Lower petrol prices (down 22.4 percent) made the largest individual contribution. If
petrol and diesel prices had remained unchanged from the September 2008 quarter, the CPI would
have increased 0.9 percent.

The food group (up 1.5 percent) made a significant upward contribution to the CPI in the December 2008
quarter, driven by higher prices for meat, poultry and fish (up 6.3 percent) and grocery food (up 2.6
percent).

The housing and household utilities (up 0.6 percent) and recreation and culture (up 1.5 percent) groups also

made significant upward contributions, driven by overseas package holidays (up 7.5 percent) and electricity
(up 2.0 percent). Prices for the purchase of new housing (down 0.2 percent) fell for the first time since the
March 1999 quarter.

The CPI increased 3.4 percent for the year to the December 2008 quarter. The food group (up 9.4 percent)
accounted for half the increase, driven by grocery food prices (up 11.2 percent). The housing and
household utilities group (up 4.3 percent), with higher prices for electricity (up 7.7 percent), also made a
significant contribution. Petrol prices fell 4.8 percent over the year.

Geoff Bascand
20 January 2009
Government Statistician

END

See also the Hot Off The Press information release Consumers Price Index: December 2008 quarter.