27 April 2006
CPI Annual Inflation Rises to 3.3 Percent
Revised 27 April 2006 – See attached Erratum
The annual inflation rate, as measured by the Consumers Price Index (CPI), was 3.3 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 0.6 percent in the March 2006 quarter, following a 0.7 percent increase in
the December 2005 quarter.
Significant contributions to the 3.3 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 2.5 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 1.2 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
Erratum
Revision to the Consumers Price Index: March 2006 quarter
An error in processing has resulted in the publication of incorrect figures in the Consumers Price Index: March 2006
quarter information release issued on 19 April 2006. The error arose in calculating the net effect of subsidies provided
to child care providers, following recent changes in government policy. All figures are now correct, and incorporate
revisions to the following indexes – 'CPI all groups', 'recreation and education', and 'child care'.
The impact on the CPI 'all groups' index is small, resulting in a revision of half an index point.
As a consequence of rounding procedure, the published index has been revised by one index point. The increase in the CPI
from the December 2005 quarter has been revised downward to 0.6 percent, from 0.7 percent. The change from the March
2005 quarter to the March 2006 quarter has been revised downward to 3.3 percent, from 3.4 percent.
In the normal course of business, minor errors of this sort are shown as a correction to the index levels in the
following quarter. However, given that the error in child care has resulted in a change in the higher-level indexes,
this correction has been made promptly, and Statistics NZ hopes this will help avoid disruption to the wide range of
users of the 'all groups' CPI.
We regret any inconvenience this error may have caused.
The Tables, Highlights and Commentary sections have been changed to reflect these revisions.
Brian Pink
Government Statistician