New Zealand CPI 1.3% in 2016, lifted by Housing Prices

 

The consumers price index (CPI) inflation rate in New Zealand ended 1.3% in the year ended December 2016,  New Zealand statistics department said today.

In respect, prices for tradable goods and services were 0.1%  lower in the year ended December. Petrol and international airfares were cheaper than a year ago despite higher quarterly prices, the statistics bureau said, adding non-tradable goods and services increased 2.4%, influenced by housing-related price increases.

“This is the first time in over two years that price increases for household purchases have been over 1%”, prices senior manager Jason Attewell said, “Household price inflation is up from a historical low of 0.1% for the December 2015 year”

Housing-related prices continued to increase, up 3.3% in the year ended December, , according to the statistics department.  Prices for newly built houses excluding land went up 6.5% whereas  housing rentals went up 2% during the year from a year ago.

“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 noted.

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