New Zeeland CPI rose more than expected in March. Highest in five years

The consumers price index (CPI) increased 2.2 percent in the year to the March 2017 quarter, Stats NZ said today. This is the highest annual increase since the September 2011 quarter, the last quarter affected by the rise in GST from 12.5 to 15 percent.

"Rising petrol prices along with the annual rise in cigarette and tobacco tax lifted inflation," prices senior manager Jason Attewell said. "Petrol prices in New Zealand are closely linked to global oil prices, and cigarettes and tobacco taxes rise in the March quarter each year".

Housing-related prices continued to increase, up 3.3 percent in the March 2017 year. Prices increased for newly built houses, excluding land (up 6.7 percent), and for housing rentals (up 2.3 percent). Newly built houses, excluding land, were up 8.0 percent in Auckland and 3.6 percent in Christchurch.

Transport prices (up 3.5 percent) made the second largest upward contribution, with petrol (up 12 percent) partially offset by falls in other private transport services (vehicle relicensing fees).

Prices fell for broadband and cellphone plans, as well as handsets. Improvements to speed and data capacity improved the quality of the service, which is reflected as a price fall.

Excluding petrol, and cigarettes and tobacco, the CPI showed a 1.5 percent increase.