Consumer Prices Increase 0.9 Percent

Consumer Prices Increase 0.9 Percent

The Consumers Price Index (CPI) increased 0.9 percent in the June 2005 quarter, according to Statistics New Zealand. The most significant contributions to the increase came from higher prices for housing, transportation and household operation.

Housing prices increased 1.7 percent in the June 2005 quarter, mainly due to price increases for the purchase and construction of new dwellings (up 2.2 percent) and real estate agent fees (up 8.7 percent).

Transportation prices increased 2.1 percent in the quarter, with the most significant price increases in petrol (up 7.1 percent) and motor vehicle insurance (up 4.2 percent). Prices for household operation increased 0.5 percent. The most significant increase was in electricity prices (up 1.3 percent).

Over the 12 months to the June 2005 quarter, the CPI increased 2.8 percent. The most significant increases in this period were in prices for the purchase and construction of new dwellings (up 7.6 percent), electricity (up 8.1 percent) and petrol (up 7.0 percent). Significant price decreases were recorded for fresh vegetables (down 10.2 percent), communication equipment and services (down 2.5 percent) and international air travel (down 2.5 percent).

In the June 2005 quarter, the non-tradable component (up 1.1 percent) made the largest contribution to the CPI all groups movement. The tradable component increased 0.6 percent in the quarter.

Brian Pink

Government Statistician

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