New Zealand inflation rate slows to 1.7% in Q2Staff Writer | July 20, 2017
Consumer prices in New Zealand increased 1.7% year-on-year in the second quarter of 2017, below market expectations of 1.9% and down from 2.2% in the previous period which was the highest in five years.
New Zealand Consumer prices
The inflation rate eased for the first time in six quarters mainly due to a softer increase in prices of housing, utilities and transport and a steeper decline in cost of communication.
Prices rose at a slower pace for housing and utilities (3.1% from 3.3% in Q1), with purchase of new housing up 6.4% (6.7% in Q1).
Inflation also slowed for transport (1.2% from 3.5% in Q1); miscellaneous goods and services (1.7% from 1.9%); alcoholic beverages and tobacco (3.7% from 3.9%).
In addition, communication prices decreased 4.6% (-3.1% in Q1), with large decreases for telecommunications services and equipment. In contrast, food cost accelerated (2% from 1.6%).
On a quartely basis, consumer prices were flat: food prices rose 0.7%, influenced by higher prices for vegetables (up 19%). Housing and household utilities prices rose 0.8%, influenced by purchase of new housing (up 1.8%).
On the other hand, transport prices fell 1.3%, with cheaper domestic airfares (down 15%). ■