New Zealand’s annual inflation hits 3.3 per cent

Wellington, July 17 – New Zealand’s consumers price index increased 3.3 per cent in the 12 months to the June 2024 quarter, following a 4 per cent increase in the 12 months to the March 2024 quarter, the statistics department Stats NZ said on Wednesday.

“The 3.3 per cent annual price increase is below what was seen during the peak in 2022, and is similar to three years ago,” Stats NZ consumers prices senior manager Nicola Growden said, adding that the Reserve Bank of New Zealand’s target range for consumer inflation is between 1 per cent and 3 per cent, Xinhua news agency reported.

Due to rising prices for rent, construction of new houses, and rates, housing and household utilities were the largest contributors to the annual inflation, Growden said.

Rising prices for insurance, which increased 14 per cent in the 12 months to the June 2024 quarter following a 14-per cent annual increase for the previous quarter, was the second largest contributor to the annual inflation, he said.

Insurance prices nearly doubled the figure 15 years ago in June 2009, Growden said, adding that the higher insurance prices were driven by increases in dwelling and vehicle insurance premiums.

The third largest contributor to the annual inflation was cigarettes and tobacco, and beer, statistics show.

Quarterly, New Zealand’s consumer price index rose 0.4 per cent in the June 2024 quarter, due to rising prices for housing and household utilities, partly offset by lower recreation and culture prices, according to Stats NZ.

The 3 per cent increase in electricity prices this quarter is the largest quarterly rise in 10 years, but is similar to the June 2023 quarter, Growden said.