Consumer prices in New Zealand were up 0.5 percent in the first quarter of 2012 compared to the previous three months, Statistics New Zealand said on Thursday - in line with expectations following the 0.3 percent contraction in Q4 of 2011.
Cigarette and tobacco prices rose 13.5 percent in the quarter, reflecting a 14.49 percent rise in excise duty on 1 January 2012. Petrol prices were the second biggest contributor, up 2.3 percent. "The main reason for the rise was higher cigarette and tobacco prices," Statistics NZ prices manager Chris Pike said in a release accompanying the data. "Prices were also higher for petrol, rentals for housing, and insurance. These rises were partly countered by price falls for international air fares and overseas package holidays."
The housing and household utilities group rose 0.7 percent, mainly due to higher rentals for housing (up 0.9 percent). Higher prices were also recorded for property maintenance (up 1.2 percent) and purchase of new housing (up 0.7 percent).
Insurance premiums rose 3.0 percent, mainly due to higher dwelling insurance prices (up 18 percent, reflecting increased Earthquake Commission levies).
The main price fall was for overseas package holidays, down 12 percent. Prices for overseas package holidays usually fall in March quarters, following rises in December quarters.
International air fares also fell, down 9.2 percent - they usually fall in March quarters after seasonal peaks in December quarters.
"International air fares often fall by 8 or 9 percent in March quarters, and sometimes more," Pike said.
On a yearly basis, consumer prices were up 1.6 percent - again matching forecasts after climbing 1.8 percent three months earlier.
Cigarette and tobacco prices increased 13.5 percent. Prices also rose for petrol (up 3.7 percent), rentals for housing (up 2.3 percent), and second-hand cars (up 8.9 percent).
The main downward contributions for the year to the March 2012 quarter came from lower prices for telecommunication services (down 7.7 percent), audio-visual equipment (down 18 percent), and vegetables (down 8.4 percent).
Upon the release of the data, the New Zealand dollar edged lower against major opponents, trading near 0.8160 against the U.S. dollar, 1.2694 versus the Aussie, 66.35 against the yen and 1.6081 versus the euro.
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