Stats NZ has a new website.

For new releases go to

www.stats.govt.nz

As we transition to our new site, you'll still find some Stats NZ information here on this archive site.

  • Share this page to Facebook
  • Share this page to Twitter
  • Share this page to Google+
Consumers Price Index: June 2017 quarter
Embargoed until 10:45am  –  18 July 2017
Commentary

Transport prices flatten CPI

The CPI was flat overall in the June 2017 quarter, following a 1.0 percent rise in the March 2017 quarter. Higher prices for housing and household utilities, and food, were partly offset by falls in transport, recreation and culture, and communication. After adjusting for seasonal effects, prices fell 0.1 percent.

Transport prices fell 1.3 percent, influenced by seasonally lower prices for domestic airfares (down 15 percent) and petrol (down 1.9 percent). Petrol prices fell 2.9 percent in both the South Island and Wellington, and 1.7 percent in Auckland.

Petrol prices peaked in the September 2013 quarter, when the average price of a litre of 91 octane reached $2.17 nationally. Since then, prices have fallen 15 percent in Auckland, 10 percent in Wellington, and 9.7 percent in the South Island.

Recreation and culture prices fell 0.7 percent, with lower audio-visual and computing equipment prices down 5.4 percent, and seasonally lower prices for accommodation services down 8.1 percent.

A fall in communication prices (down 1.8 percent) reflected better value telecommunications services (down 1.3 percent).

Housing and household utilities prices rose 0.8 percent in the June 2017 quarter. 

  • Prices for newly built houses were up 1.8 percent; in Auckland, prices rose 3.0 percent. 
  • Electricity prices rose 1.5 percent, reflecting seasonally higher winter rates. 
  • Prices for actual rentals for housing rose 0.4 percent nationally, with rental prices in Wellington up 0.9 percent. Housing rental prices in Canterbury fell 1.6 percent, and are now at a similar level to the December 2014 quarter.

Food prices were up 0.7 percent in the June 2017 quarter.

  • Vegetable prices rose 19 percent, reflecting poor weather and growing conditions over the quarter.
  • Dairy prices rose over the quarter, with prices for butter reaching their highest price since the series began.

For more information, see Food Price Index – information releases.

Tradable prices drop in June quarter

Tradables fell 0.2 percent in the June 2017 quarter, following a 0.8 percent rise in the March 2017 quarter. Price falls for petrol, fruit, and furniture and furnishings were mostly offset by high vegetable prices.

Non-tradables rose 0.2 percent in the June 2017 quarter, with higher prices for new housing, electricity, and rents largely offset by cheaper domestic airfares and accommodation services, and seasonally lower prices for car rentals.

The following graph shows the index points contribution to the CPI of items that rose or fell in price for each quarter (see also table 13, available from the 'Downloads' box).

Graph, percentage points contribution to the CPI, June 2014 to June 2017 quarters.

Annual inflation rate falls to 1.7 percent

In the year to the June 2017 quarter, the CPI increased 1.7 percent, following an increase of 2.2 percent in the year to March 2017. This is the third consecutive annual increase in line with the Reserve Bank's target band of 1–3 percent.

Housing and household utilities were the main upward contributor, up 3.1 percent, influenced by:

  • newly built houses, excluding land (up 6.4 percent)
  • actual rentals for housing (up 2.1 percent), with a 2.9 percent increase in Auckland and a 2.8 percent increase in Wellington 
  • local authority rates (up 3.2 percent).

Other housing-related prices also increased, with real estate services up 9.5 percent, and professional services (valuation and conveyancing) up 9.4 percent.

Overall, the above prices contributed 0.885 percentage points to the overall annual movement of 1.7 percent.

Food prices increased 2.0 percent, with fruit and vegetables up 8.8 percent.

Alcoholic beverages and tobacco prices increased 3.7 percent, reflecting the annual increase in tobacco tax in the March quarter.

Transport prices increased 1.2 percent, influenced by higher prices for petrol (up 4.5 percent). These were partly offset by price decreases for vehicle relicensing fees.

Communication group prices decreased 4.6 percent, with better value telecommunications services (down 3.8 percent).

Prices for technology items continued to decrease, with audio-visual and computing equipment down 9.0 percent, and telecommunication equipment down 24 percent. Much of the price decreases represents continual improvements in quality and capability for these items. Prices for telecommunications services also decreased (down 3.8 percent), reflecting higher speeds and larger caps for broadband and cellphone plans.

Tradables increased 0.9 percent in the year to June 2017. Higher prices for vegetables, petrol, and milk, cheese and eggs made the main upwards contributions. These were partly offset by decreases for personal care items, audio-visual equipment, telecommunication equipment, and fruit.

Non-tradables increased 2.4 percent in the year to June 2017. Prices for the purchase of newly built houses, excluding land, made the most significant upwards contribution, followed by cigarettes and tobacco, and actual rentals for housing. These increases were partly offset by decreases for vehicle relicensing fees and telecommunications services.

Underlying price change stronger than overall increase

The trimmed mean measures – which exclude extreme price rises and falls – showed quarterly changes from -0.1 to 0.1 percent, with trims at 20 percent or above at 0.1 percent. This indicates the ‘underlying’ price change (excluding extreme price rises and falls) was slightly higher overall for the quarter. 

Underlying price change ranged from 1.8 to 1.9 percent on an annual basis, indicating higher underlying price change. At the 10 percent trim, the main upward contributors were newly built houses, actual rentals for housing, and petrol. 

Table 3.03 of the attached Excel tables shows selected groupings in the year to the June 2017 quarter.

  • CPI excluding housing and household utilities group increased 1.3 percent.
  • CPI excluding alcoholic beverages and tobacco group increased 1.5 percent.
  • CPI excluding transport group increased 1.9 percent.

The 'non-tradables less central and local government charges and cigarettes and tobacco subgroup' measure, which aims to reflect price change excluding direct government influence, rose 0.1 percent for the quarter, and 2.2 percent for the June 2017 year. Central and local government charges rose 0.9 percent in the year to the June 2017 quarter.

New regional series available on Infoshare

From the June 2017 quarter, ongoing broad-region indexes on newly built housing, housing rentals, and petrol will be available on Infoshare. The broad-regions and customised series added are:

  • Newly built housing
    • Auckland
    • Wellington
    • Rest of North Island
    • North Island
    • Canterbury
    • Rest of South Island
    • South Island
    • New Zealand less Auckland
    • New Zealand less Christchurch
  • Housing rentals
    • Auckland
    • Wellington
    • Rest of North Island
    • North Island
    • Canterbury
    • Rest of South Island
    • South Island
    • New Zealand less Auckland
    • New Zealand less Christchurch
  • Petrol
    • Auckland
    • Wellington
    • Rest of North Island
    • North Island
    • Canterbury
    • Rest of South Island
    • South Island

For more detailed data on the CPI see the Excel tables in the ‘Downloads’ box.

  • Share this page to Facebook
  • Share this page to Twitter
  • Share this page to Google+

Does the information on this page meet your needs?


Top
  • Share this page to Facebook
  • Share this page to Twitter
  • Share this page to Google+