Annual increase of 1.9 percent in CPI | infonews.co.nz New Zealand News

The consumers price index (CPI) increased 1.9 percent from the June 2008 quarter to the June 2009quarter, which included a rise of 0.6 percent for the June 2009 quarter, Statistics New Zealand said today.

This annual increase is the smallest since a 1.8 percent rise recorded in the year to the September 2007quarter.

The food group (up 0.9 percent) made the biggest upward contribution to the quarterly CPI increase of 0.6percent, driven by higher vegetable prices (up 6.9 percent).

Higher prices for vegetables were partly offsetby lower fruit prices (down 6.0 percent). In the year to the June 2009 quarter, the food group increased 7.5percent, accounting for two-thirds of the CPI annual increase of 1.9 percent.The transport group rose 0.6 percent in the June 2009 quarter.

Higher prices for petrol (up 3.2 percent) andsecond-hand cars (up 4.4 percent) were partly offset by a decrease in international airtransport prices (down 14.4 percent).

Transport prices fell 6.6 percent in the year to the June 2009 quarter,with lower prices for petrol (down 17.0 percent), international air transport (down 20.7 percent), and diesel(down 38.3 percent).

If petrol and diesel prices had remained unchanged from the June 2008 quarter to theJune 2009 quarter, the CPI would have increased 3.0 percent.

The housing and household utilities group rose 0.4 percent in the June 2009 quarter, with higher electricityprices, up 1.6 percent.

The housing and household utilities group rose 2.8 percent in the year to the June2009 quarter.

This is the smallest annual increase since the year to the March 2002 quarter. For the firsttime since the year to the September 1999 quarter, the annual increase for purchase of new housing (up1.3 percent) is lower than rentals for housing (up 1.7 percent).

Geoff Bascand
Government Statistician
16 July 2009
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