Consumer prices in New Zealand gained 0.2 percent on quarter in the third quarter of 2016, Statistics New Zealand said on Tuesday.
That exceeded forecasts for a flat reading following the 0.4 percent increase in the second quarter.
"Higher housing-related prices were countered by lower transportation prices," consumer prices manager Matt Haigh said.
Housing and household utilities prices rose 1.1 percent in Q3. This rise was influenced by higher prices for purchase of new housing, excluding land (up 2.0 percent), and local authority rates (up 3.0 percent).
Transport prices (down 3.0 percent) made the largest downward contribution for the latest quarter. Other private transport services fell 28 percent, reflecting cheaper vehicle relicensing fees implemented from 1 July. Petrol prices fell 1.7 percent, with the average price of a litre of 91 octane petrol at NZ$1.75. Prices for new and used cars also fell.
On a yearly basis, consumer prices added 0.2 percent versus expectations for 0.1 percent and down from 0.4 percent in the three months prior.
Housing-related prices continued to be the main upward contributor, up 3.2 percent in the year. This increase was influenced by higher prices for purchase of new housing, excluding land (up 6.3 percent), and rentals for housing (up 2.1 percent).
Property maintenance prices, such as painting and plumbing, have also increased steadily throughout the year and are now 3.1 percent higher than a year ago.
Transport prices made the largest downward contribution for the year, down 6.7 percent as prices for petrol and vehicle relicensing fell.
"Petrol prices in the September 2016 quarter were 11 percent lower than a year ago," Haigh said.
Petrol makes up around 5 percent of the CPI basket. Excluding petrol, the CPI showed a 0.8 percent increase in Q3.
by RTT Staff Writer
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