Deflation hits New Zealand in Q4 2014

Ivan Delgado Independent Analyst

FXStreet (Bali) - New Zealand Consumer Price Index (QoQ) came in below forecasts in 4Q, with the actual printing -0.2% vs 0% expected, while the YoY read came in at 0.8% vs 0.9% exp.

Key facts - NZ Bureau of Statistics

Quarterly change

In the December 2014 quarter compared with the September 2014 quarter:

The consumers price index (CPI) fell 0.2 percent to a level of 1197.

Petrol prices fell 5.7 percent, making the largest downward contribution.

Vegetable prices (down 14 percent) showed a smaller-than-usual seasonal fall.

International air fares (up 7.3 percent) and package holidays (up 5.3 percent) showed seasonal rises. Domestic air fares (up 8.3 percent) were influenced by high demand leading up to the holiday period.

Prices for newly built houses excluding land (up 1.7 percent) showed a strong rise.

Annual change

From the December 2013 quarter to the December 2014 quarter:

The CPI increased 0.8 percent.

Cigarettes and tobacco prices increased 11.9 percent, influenced by a tobacco excise duty rise in January 2014.

Prices for newly built houses excluding land (up 5.4 percent), rentals for housing (up 2.1 percent), and electricity (up 3.6 percent) also increased.

Petrol (down 4.0 percent) was the main downward contributor.

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.

Author

Ivan Delgado

Independent Analyst

Established in the Asian continent since 2009, Ivan studied a degree in Business at the University Pompeu Fabra (Barcelona), while also earning a postgraduate degree in Business Administration.

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