New Zealand’s consumer price index rose 4 percent in the 12 months to the March 2024 quarter, the smallest increase since June 2021, according to the statistics department Stats NZ on Wednesday.
The 4 percent increase followed a 4.7 percent increase in the 12 months to the December 2023 quarter, Stats NZ said.
Although the price increases this quarter are the smallest since June 2021, they remained above the Reserve Bank of New Zealand’s target range of 1 to 3 percent, Stats NZ consumers prices senior manager Nicola Growden said.
Housing and household utilities was the largest contributor to the annual inflation rate due to rising prices for rent, construction of new houses, and rates, Growden said.
Rent prices increased 4.7 percent in the 12 months to the March 2024 quarter, while construction of new houses and rates increased 3.3 percent and 9.8 percent, respectively, he said.
“Rent prices are increasing at the highest rate since the series was introduced in September 1999,” Growden said.
The second largest contributor to the annual increase was recreation and culture, due to rising prices for international accommodation, and cultural services such as subscription TV, cinema tickets, and zoo admission, he said.
Prices for international accommodation increased 20.8 percent in the 12 months to the March 2024 quarter, following a 6 percent increase a year earlier, he added.
Alcoholic beverages and tobacco were the next largest contributor, driven by rising prices for cigarettes and tobacco, and beer, Growden said.
The consumer price index rose 0.6 percent in the March 2024 quarter, due to rising prices for alcoholic beverages and tobacco, and recreation and culture, partly offset by lower transport prices, statistics show.
The fall in transport prices was driven by a 10.3 percent decrease for international airfares and a 2.3 percent decrease in petrol prices, Stats NZ said.
