Inflation was 1.1% for the September quarter, Statistics New Zealand announced this morning, taking the annual rate to 1.5% for the year to 30 September.The rise was not unexpected – the consensus market forecast was for an increase of 1% for the qu
Inflation was 1.1% for the September quarter, Statistics New Zealand announced this morning, taking the annual rate to 1.5% for the year to 30 September.
The rise was not unexpected – the consensus market forecast was for an increase of 1% for the quarter (and 1.4% for the year).
The rise in GST, although it did not take effect until the day after this survey was completed (and which of course saw many companies, and organisations like the Lottories Commission, adding a bit of cream on the top for themselves), already had an impact, with electricity companies adding the increase to their bills for the period.
Electricity prices rose 2.8% for the quarter.
Some telecommunications companies also added GST for the period, Statistics New Zealand’s Chris Pike said, although this was not as significant as the electricity sector.
The largest contributor to the increase was the usual winter food price spike, with a 19.7 % increase in the cost of vegetables.
Other increases in the food group reflected the hikes in government imposts: alcohol and tobacco prices were up 2.3%.
It was not the only increase from government-related increases: the group “other private transport services” saw an 8.4% increase, due to the accident compensation levy increase for motor vehicles taking effect.
Taken as a group, the “tradeable” sector – that is, the part of the economy where prices are determined mostly by competitive factors – saw an increase of 0.9% for the quarter and 0.3% for the year.
The non-tradeable sector – the government sector and parts of the economy where prices are set largely by government rules – as usual saw larger price increases.
Prices for this group rose 1.2% for the quarter and 2.5% for the year.
The next quarterly figures - due out in mid-January - will take account of the full GST increase and are expected to see a rise in inflation above the 3% ceiling to somewhere between 4-5%.
