Embargoed until 10:45am – 19 April 2006
CPI Annual Inflation Rises to 3.4 Percent
The annual inflation rate, as measured by the Consumers Price Index (CPI), was 3.4 percent for the year to the March
2006 quarter, up from 3.2 percent for the year to the December 2005 quarter, Statistics New Zealand said today. On a
quarterly basis, consumer prices increased 0.7 percent in the March 2006 quarter, following a 0.7 percent increase in
the December 2005 quarter.
Significant contributions to the 3.4 percent annual increase in the CPI came from higher prices for petrol (up 23.5
percent), and the purchase and construction of new dwellings (up 5.9 percent). The annual increase for petrol is the
largest recorded since the September 2000 quarter, when petrol prices increased 31.1 percent. If petrol prices had
remained unchanged from the March 2005 quarter, the annual increase in the CPI would have been 2.6 percent. Similiarly,
if construction prices had remained unchanged, the CPI would have increased 2.8 percent.
Major contributions to this quarter's increase came from the housing (up 0.8 percent), food (up 1.0 percent), and
recreation and education (up 1.7 percent) groups. The most significant downward contribution came from the
transportation group (down 0.3 percent). Within these groups, major upward contributions came from higher prices for
petrol (up 5.1 percent) and the purchase and construction of new dwellings (up 1.0 percent). Partly offsetting these
were lower prices for international air travel (down 12.3 percent).
Brian Pink
Government Statistician
ENDS