Inflation reaches highest point in five years

  • 20/04/2017

Rising petrol prices, and the annual rise in cigarette and tobacco tax has lifted inflation to its highest in more than five years, Statistics NZ says.

The consumers price index increased 2.2 per cent in the year to the March quarter, Statistics New Zealand said on Thursday.

It was the highest increase since the September 2011 quarter, which was affected by the rise in GST from 12.5 to 15 per cent.

However, excluding petrol, cigarettes and tobacco, CPI only increased 1.5 per cent.

Housing prices continued to increase, and were up 3.3 per cent in the March 2017 year, with newly built houses up 6.7 per cent, and rentals up 2.3 per cent.

Transport prices made the second largest upward contribution , up 3.5 per cent, while petrol, up 12 per cent, was partially offset by falls in other private transport services such as vehicle relicensing fees.