New Zealand's consumer prices rose at a faster pace than reported in the September quarter, with Statistics NZ discovering it mucked up the way it calculated Accident Compensation Corp's motor vehicle licensing fees in the period.
The consumers price index rose 0.3% in the three months ended September 30, above the 0.2% pace originally reported on October 18, which was itself above Reserve Bank expectations for a 0.1% increase. The annual pace was revised up to 0.4%, twice the 0.2% annual pace reported last month, and closer to the bottom of the Reserve Bank's 1-3 percent target band.
"The changes were required to correct a manual processing error discovered by Statistics NZ. The error affected prices for vehicle relicensing fees, within the transport group," the government department said in a statement. "Statistics NZ is confident that the correction only affects the September 2016 quarter index numbers, as it occurred in our measurement of lower ACC levies for light vehicles that came into effect during the quarter."
The government department has already told the Reserve Bank, which issues its monetary policy statement shortly and the Treasury, which is preparing the half-year economic and fiscal update.
"Following our protocols for errors, Statistics NZ has decided to correct the CPI now to ensure our customers have the best possible information to inform their decisions," it said.
The revision means prices for the transport sector shrank 1.9% in the quarter, not the 3% originally reported, for an annual decline of 5.6% as opposed to 6.7%. The transport sector was the biggest drag on prices in the quarter due largely to the reduction in vehicle relicensing fees that kicked in on July 31. Cheap petrol and new and used cars have also been weighing on the sector.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- New Warehouse executive explains his $150k Trump donation
- NBR Rich List family unable to settle dispute over $264k
- Bribery scandal shrouds owner of Scott Tech
- Another multi-million dollar claim casts a shadow over Carter Holt Harvey
- Cooperative Bank posts flat annual earnings as shrinking margins offset lending growth
Most listened to
- Lawyer Adina Thorn discusses her decision to launch a class action against Carter Holt Harvey over its Shadowclad product
- FMA's Rob Everett says confidence in capital markets is increasing
- NBR's Rob Hosking says housing and debt are the two things people haven't grasped about Budget 2017
- FNZC's John Norling on last week's star stocks and this week's outlook
- RedShield founder explains what makes his cyber service so attractive to Fortune 500 companies
- NBR Radio: best of the week ended May 26, with Grant Walker