CPI rises 0.8 percent in March quarter

The consumers price index (CPI) rose 0.8 percent for the March 2011 quarter, Statistics New Zealand
said today. “The 0.8 percent increase in the CPI reflects higher prices for petrol, cigarettes, tobacco, and
food,” Statistics NZ’s prices manager Chris Pike said.

The transport group rose 2.5 percent in the March 2011 quarter, with a rise in petrol prices of 9.7 percent
being countered by a seasonal fall of 9.2 percent in international air fares. "Petrol prices have increased
strongly over the past six months and at the end of March were only slightly below their peak in July
2008," Mr Pike said.

Cigarette and tobacco prices rose 9.4 percent in the March 2011 quarter, reflecting an 11.6 percent
increase in excise duty on 1 January 2011.

Food prices rose 1.2 percent, with prices for grocery food up 1.1 percent and meat, poultry, and fish up
2.1 percent. The increase in grocery food prices reflects higher prices for bread and cereals (up 1.4
percent), and milk, cheese, and eggs (up 1.3 percent).

In the year to the March 2011 quarter, the CPI increased 4.5 percent, including a 2.3 percent increase in
the December 2010 quarter when GST rose from 12.5 to 15 percent. Significant upward contributions in
the year to the March 2011 quarter came from higher prices for transport (up 8.2 percent), housing and
household utilities (up 4.0 percent), food (up 4.8 percent), and alcoholic beverages and tobacco (up 11.4
percent).

Petrol prices increased 17.1 percent in the year to the March 2011 quarter. Cigarette and tobacco prices
rose 26.1 percent, reflecting two increases in excise duty on both cigarettes and tobacco in late April 2010
and January 2011.

The March 2011 quarter CPI was not materially affected by the Christchurch earthquake on 22 February
2011.

The CPI measures the rate of price change of goods and services purchased by households. Statistics
NZ visits 3,000 shops around New Zealand to collect prices for the CPI and check product sizes and
features.

Geoff Bascand 18 April 2011
Government Statistician