Annual inflation stuck at 7.2%

The consumers price index (CPI) increased 7.2 per cent in the year to the December 2022 quarter, following an annual rise of the same level in the September quarter.

It also follows annual increases of 7.3 per cent and 6.9 per cent in the June and March quarters of this year, respectively, according to figures from Stats NZ.

Housing and household utlilites was the largest contributor to the annual inflation rate for the last three months of 2022 because of rising prices for constructing and renting housing.

Higher food prices and airfares also played a substantial part for keeping inflation running hot.

The year-on-year change for the purchase of vehicles subgroup was an increase of 2.6 per cent in December, which was lower than the 4.4 per cent rise in prices in the September quarter.

While annual inflation was unchanged, the quarterly increase in prices for December was 1.4 per cent and down from a 2.2 per cent jump in the September quarter.

Transport prices for the latest quarter were up 0.9 per cent as a 19 per cent increase in international airfares was partly offset by petrol prices falling 7.2 per cent. In this category, purchase of vehicles only edged up 0.1 per cent.