Annual inflation at 5.6 percent

New Zealand’s consumers price index increased 5.6 percent in the 12 months to the September 2023 quarter, according to figures released by Stats NZ today.

The 5.6 percent increase follows a 6 percent increase in the 12 months to the June 2023 quarter.

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

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

Ready-to-eat food prices increased 9.4 percent in the 12 months to the September 2023 quarter, while milk, cheese, and eggs; and bread and cereals increased 11.5 percent and 11.8 percent, respectively.

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

Prices for construction increased 5.0 percent in the 12 months to the September 2023 quarter, following a 7.8 percent increase in the 12 months to the June 2023 quarter.

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

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

Quarterly inflation at 1.8 percent

The consumers price index rose 1.8 percent in the September 2023 quarter, influenced by transport, and housing and household utilities.

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

“Petrol prices increased 41 cents in the September 2023 quarter, partly due to the end of the 25 cents per litre tax relief,” Growden said.

The housing and household utilities group was the next largest contributor to the quarterly movement, with higher prices for local authority rates and payments, and rents, up 9.8 percent and 1.2 percent respectively.

Rates are captured once a year in the September quarter, as this is when ratepayers see price changes set by councils.

Tradeable and non-tradeable inflation

Non-tradeable inflation was 6.3 percent in the 12 months to the September 2023 quarter, driven by construction, rents, and ready-to-eat food.

Non-tradeable inflation measures final goods and services that do not face foreign competition and is an indicator of domestic demand and supply conditions. However, the inputs of these goods and services can be influenced by foreign competition.

Tradeable inflation was 4.7 percent in the 12 months to the September 2023 quarter, driven by confectionery, nuts and snacks, petrol and bread and cereals.

Tradeable inflation measures final goods and services that are influenced by foreign markets.