New Zealand Q1 CPI bets expectations

New Zealand Q1 CPI came at 0.2% q/q vs 0.1% expected and -0.5% last, while y/y, it stood at +0.4% vs 0.4% expected and 0.1% last.

Key facts

Quarterly change

In the March 2016 quarter compared with the December 2015 quarter:

The consumers price index (CPI) rose 0.2 percent to a level of 1200.
Petrol prices fell 7.7 percent, making the largest downward contribution.

Low oil prices contributed to price falls for air fares.

Housing-related prices and food prices rose.

Prices for tradable goods and services fell 0.9 percent, while prices for non-tradable goods and services rose 1.0 percent.

After seasonal adjustment, the CPI rose 0.2 percent.

Annual change

From the March 2015 quarter to the March 2016 quarter:

The CPI increased 0.4 percent (up from 0.1 percent in the year to the December 2015 quarter).

Rentals for housing (up 2.3 percent), prices for newly-built houses excluding land (up 5.0 percent), and local authority rates (up 6.2 percent) all increased.

Lower prices for other private transport services and petrol made the main downward contribution.

Prices for non-tradable goods and services increased 1.6 percent.
Prices for tradable goods and services decreased 1.2 percent.

Average prices

The average price of 1 litre of 91 octane petrol was $1.69 in the March 2016 quarter, compared with $1.84 in the December 2015 quarter.

The average price of a pack of 25 cigarettes was $28.79 in the March 2016 quarter. This compares with $26.43 in the December 2015 quarter, and $13.28 in the December 2009 quarter (before annual 10 percent excise tax increases were introduced).

The CPI measures the rate of price change of goods and services purchased by New Zealand households. Statistics NZ visits 2,800 shops around New Zealand to collect prices for the CPI and check product sizes and features.