Falling petrol prices help stabilise CPI

There was no change in the consumer price index (CPI) in the June quarter, and was down 0.1 percent after seasonal adjustment, according to Statistics New Zealand. The annual inflation rate was 1.7 per cent, down from 2.2 per cent in the year ending March 2017. "Household basics like rent, food, and electricity all hit consumers' pockets harder this quarter," prices senior manager Jason Attewell said. "Offsetting these price rises were falls in domestic airfares and petrol prices – which fell on average by 4 cents a litre." Transport prices fell 1.3 per cent, spurred on by a fall in domestic airfares (down 14.5 per cent) and petrol (down 1.9 per cent). Car rentals also saw seasonally lower prices for the quarter. The purchase of vehicles was static, down 0.1 per cent compared to the previous quarter, but up 1.4 per cent when compared to June 2017. The average price of a litre of 91 octane petrol was measure at $1.86 in the June 2017 quarter, down from $1.90 in March, but up from $1.78 in June 2016. Falling transport prices offset an increase in food, which rose 0.7 per cent in the June quarter, and housing, which increased 0.8 per cent.