Consumer prices in New Zealand advanced 0.4 percent on quarter in the fourth quarter of 2016, Statistics New Zealand said on Thursday.
That exceeded forecasts for 0.3 percent, which would have been unchanged from the third quarter.
"Higher prices for petrol, air fares, and new house builds were partly offset by lower prices for food and furniture," prices senior manager Jason Attewell said.
Petrol prices made the largest upward contribution for the quarter, up 4.1 percent. The average price of a liter of 91 octane petrol in the December 2016 quarter was NZ$1.82, up from NZ$1.75 in the September quarter.
Food prices fell 1.2 percent in the latest quarter, with seasonally lower fruit and vegetable prices being partly offset by higher prices for dairy products.
On a yearly basis, inflation climbed 1.3 percent – also topping expectations for 1.2 percent and up sharply from 0.4 percent in the three months prior.
"This is the first time in over two years that price increases for household purchases have been over 1 percent," Attewell said. "Household price inflation is up from a historical low of 0.1 percent for the December 2015 year."
Prices for tradable goods and services were 0.1 percent lower in Q4. Despite higher quarterly prices, petrol and international airfares were cheaper than a year ago. Non-tradable goods and services showed a 2.4 percent increase, influenced by housing-related price increases.
Housing-related prices continued to increase, up 3.3 percent in the December 2016 year. Prices increased for newly built houses excluding land (up 6.5 percent) and for housing rentals (up 2.0 percent).
"Housing-related prices in Auckland increased more than the national average, with new houses up 8.2 percent and rents up 3.2 percent from a year earlier," Attewell said.
by RTT Staff Writer
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