Consumers price index increases 7.2 percent

Te Whanganui a Tara - The consumers price index increased 7.2 percent annually in the September 2022 quarter, Stats NZ says.

The 7.2 percent increase follows an annual increase of 7.3 percent in the June 2022 quarter, and an annual increase of 6.9 percent in the March 2022 quarter.

The main driver for the 7.2 percent annual inflation to the September 2022 quarter was housing and household utilities due to rising prices for construction, rentals for housing, and local authority rates.

Prices for the construction of a new house increased 17 percent in the September 2022 quarter compared with the September 2021 quarter.

The cost to construct a new house has continued to rise with supply-chain issues, labour costs, and higher demand, all of which combine to push up prices.

The 17 percent annual increase in construction of a new house in the September quarter follows 18 percent annual increases in both the June and March 2022 quarters.

Rental prices for housing had an annual increase of 4.6 percent in the September 2022 quarter. This follows an annual increase of 4.3 percent in the June 2022 quarter.

Local authority rates had an annual increase of 7.3 percent in September 2022 quarter. This compares with a 7.1 percent annual increase in the September 2021 quarter.

Rates are captured once a year in the September quarter, as this is when ratepayers see price changes set by councils.

How housing costs are measured in consumer price indexes at Stats NZ has more information on how housing is captured in the consumers price index.

After housing and household utilities, the next largest contributor to the annual increase was from the transport group, due to higher prices for petrol and diesel.

Petrol prices increased 19 percent in the year to the September 2022 quarter. Diesel prices increased 72 percent over the same period.

The consumers price index rose 2.2 percent in the September 2022 quarter compared with the June 2022 quarter, mainly influenced by the food group and the housing and household utilities group.

In the September 2022 quarter, compared with the June 2022 quarter, vegetable prices rose 24 percent.

This is the largest quarterly rise in vegetable prices since the series began in September 1999. Tomatoes, lettuce, and broccoli drove this rise in vegetable prices.