Consumer prices in New Zealand gained 0.7 percent on year in the second quarter of 2013, Statistics New Zealand said on Tuesday - touching a 14-year low.
The headline figure missed forecasts for an increase of 0.8 percent and eased from the 0.9 percent gain in the previous quarter.
"This annual increase is the lowest since 1999, and the fourth annual increase in a row below 1 percent," prices manager Chris Pike said.
Moving higher were prices for cigarettes and tobacco (up 12 percent), reflecting a rise in excise duty. Housing rentals (up 2.1 percent) and purchase of newly built houses (up 4.1 percent) were influenced by price rises in the South Island, particularly Canterbury, the bureau said. Electricity (up 3.4 percent) and local authority rates (4.3 percent) also increased in the year to the June 2013 quarter.
These increases were partly offset by decreases for petrol (down 2.8 percent), telecommunication services (down 4.9 percent), domestic air fares (down 12 percent), and audio-visual equipment (down 14 percent).
On a quarterly basis, consumer prices were up 0.2 percent versus forecasts for 0.3 percent after showing 0.4 percent in the first quarter.
"There were increases in electricity and housing-related prices, countered by lower petrol and motor car prices," Pike said.
In the quarter, electricity prices rose 2.6 percent. Vegetable prices (up 7.0 percent) were influenced by seasonal price rises for tomatoes and lettuce. The purchase of newly built houses (up 1.7 percent) and housing rentals (up 0.4 percent) were influenced by rises in both the North and South islands, the bureau said.
The strongest of these housing-related price rises were in Canterbury, with purchase of newly built houses up 2.9 percent and housing rentals up 1.1 percent. Dwelling insurance (up 9.9 percent) also rose.
Countering these rises, petrol prices fell 2.5 percent in the quarter, and were at their lowest level since the September 2011 quarter. Fruit prices fell 4.5 percent, influenced by seasonally lower prices for apples and kiwifruit. Both second-hand car prices (down 1.9 percent) and new car prices (down 1.0 percent) also fell.
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