17 Jul 2018

Inflation perks up in Q2, annual rate perks up

5:38 pm on 17 July 2018

Consumer inflation has perked up in the past few months on the back of higher housing and fuel costs.

No caption

Photo: 123rf

Official figures show the consumer price index rising 0.4 percent in the three months ended June.

That's pushed the annual inflation rate to 1.5 percent.

Higher prices for petrol, rates, rents and food offset cheaper electronics and cars.

The increase was just below expectations.

Inflation remains in the lower part of the Reserve Bank's one to three percent target band and is likely to mean interest rates are kept on hold well into next year.

In the June quarter, construction prices in Auckland and Wellington rose 0.6 percent and 0.7 percent .

For the rest of the North Island prices were up 1.2 percent, twice as high as the major centres.

New Zealanders are paying more to keep their homes running, according to Statistics New Zealand prices senior manager Paul Pascoe.

"Rates, property maintenance services and home insurance are all higher than they were at this time last year."

Rents rose 0.8 percent in the June quarter and 2.5 percent in the year.

Electricity prices rose 1.7 percent this quarter and 2.9 percent in the year.

Petrol prices rose 3.2 percent in the June quarter but this was countered by lower prices for used cars and home entertainment.

Used cars fell 3.3 percent, while subscriber TV and audio-visual equipment fell 7.2 percent.

Auckland consumers will experience higher prices next quarter because of the implementation of a regional fuel tax at the start of July.