New Zealand's annual inflation spikes to 5.6%

Wellington, oct 17 (IANS) New Zealand's consumer price index increased 5.6 per cent in the 12 months to the September 2023 quarter, the national statistics department said on Tuesday.

  The 5.6 per cent increase follows a 6 per cent increase in the 12 months to the June 2023 quarter, Xinhua news agency quoted Stats NZ said as saying.

"Prices are still increasing, but are increasing at rates lower than we have seen in the previous few quarters," Stats NZ consumers prices senior manager Nicola Growden said.

Food was the largest contributor to the September 2023 quarter annual inflation rate, Growden said, adding this was due to rising prices for ready-to-eat food; milk, cheese, and eggs; and bread and cereals.

The next largest contributor to the annual increase was housing and household utilities, which was due to rising prices for construction and rents, Growden said.

Prices for construction increased 5 percent in the 12 months to the September 2023 quarter, following a 7.8 per cent increase in the 12 months to the June 2023 quarter, statistics show.

Rent prices increased 4.4 per cent in the 12 months to the September 2023 quarter, following an increase of 4.2 per cent in the 12 months to the June 2023 quarter, Growden said.

Transport was the next largest contributor, driven by rising prices for petrol and domestic air transport, she said.

The consumers price index rose 1.8 per cent in the September 2023 quarter compared with the previous quarter, influenced by transport, and housing and household utilities, according to Stats NZ.

Petrol and purchase of new motor cars were the two largest contributors to the transport group, up 16.5 per cent and 4.6 per cent, respectively, Growden said.

"Petrol prices increased 41 cents in the September 2023 quarter, partly due to the end of the 25 cents per liter tax relief," she said.