Consumers Price Index: June 2008 quarter

Consumers Price Index quarterly movement

The Consumers Price Index (CPI) recorded an increase of 1.6 percent in the June 2008 quarter, following increases of 0.7 percent and 1.2 percent in the March 2008 and December 2007 quarters, respectively.

Eight of the 11 CPI groups recorded increases in the June 2008 quarter. The most significant upward contributions came from the transport (up 4.9 percent), food (up 2.2 percent) and housing and household utilities (up 1.2 percent) groups. Other upward movements came from the following groups: health (up 1.0 percent), clothing and footwear (up 0.6 percent), miscellaneous goods and services (up 0.4 percent), household contents and services (up 0.3 percent), and communication (up 0.5 percent).

Two groups recorded decreases: recreation and culture (down 0.5 percent), and alcoholic beverages and tobacco (down 0.2 percent).

The most significant individual upward contributions came from higher prices for petrol (up 12.8 percent), electricity (up 3.6 percent) and diesel (up 29.0 percent).

The most significant individual downward contributions came from lower prices for audio-visual and computing equipment (down 4.4 percent) and apples (down 21.1 percent).

^{Note: Points contribution may not sum to totals due to rounding.}

 

Distribution of item-level movements

The table below outlines the distribution of price movements in the March 2008 and June 2008 quarters. The CPI has been partitioned into those national item-level indexes that increased, showed no change, or decreased.

The distribution of item-level movements shows that in the June 2008 quarter:

• the number of items that increased in price has risen, while the number of items that decreased in price has fallen
• the weighted average price increase has risen while the weighted average price decrease has fallen
• the percentage of expenditure weight of items that increased in price is still significantly greater than the percentage of expenditure weight of items that decreased in price
• the weighted average prices increase is now greater than the weighted average prices decrease.

This resulted in an increase of 1.6 percent in the CPI in the June 2008 quarter, following an increase of 0.7 percent in the March 2008 quarter.

CPI annual movement

The CPI increased 4.0 percent in the year from the June 2007 quarter to the June 2008 quarter, following increases of 3.4 and 3.2 percent for the years to the March 2008 and December 2007 quarters, respectively.

Five of the 11 groups in the CPI made upward contributions to the annual increase in the June 2008 quarter. The most significant upward contributions came from the transport (up 9.6 percent), food (up 6.9 percent), and housing and household utilities (up 5.0 percent) groups. Also increasing for the year to the June 2008 quarter were alcoholic beverages and tobacco (up 3.0 percent), and miscellaneous goods and services (up 2.5 percent).

The most significant individual upward contributions came from higher prices for petrol (up 25.9 percent), purchase of new housing (up 5.2 percent), electricity (up 6.6 percent) and actual rentals for housing (up 3.1 percent).

Downward contributions came from the following groups: health (down 1.4 percent), education (down 1.8 percent), recreation and culture (down 0.4 percent), household contents and services (down 0.7 percent), clothing and footwear (down 0.4 percent), and communication (down 0.4 percent).

The most significant individual downward contributions came from lower prices for audio-visual equipment (down 21.9 percent), pharmaceutical products (down 16.1 percent), early childhood education (down 33.6 percent) and computing equipment (down 16.9 percent) 

CPI all groups and tradable and non-tradable component series

In the June 2008 quarter, the tradable component increased 2.3 percent, following an increase of 0.2 percent in the March 2008 quarter. The most significant contribution to the tradable component came from petrol. The tradable component would have risen 0.8 percent if petrol prices had remained constant over the same period.

The non-tradable component increased 0.9 percent, following an increase of 1.1 percent in the March 2008 quarter.

For the year to the June 2008 quarter, the tradable component rose 4.8 percent and the non-tradable component increased 3.4 percent. The most significant upward contribution to the tradable component came from petrol. If petrol prices had remained constant over the same period, the tradable component would have increased 2.1 percent. A significant downward contribution came from audio-visual and computing equipment.

Within the non-tradable component, the most significant upward contribution to the annual movement came from purchase of new housing, electricity, and actual rentals for housing. 
 

Transport

Prices for the transport group rose 4.9 percent in the June 2008 quarter, following increases of 0.8 percent and 3.2 percent in the March 2008 and December 2007 quarters, respectively. The most significant individual upward contribution came from higher prices for petrol (up 12.8 percent). If petrol prices had remained constant from the March 2008 quarter to the June 2008 quarter, the CPI would have increased 1.0 percent. Diesel (up 29.0 percent), domestic air transport (3.9 percent), and international air transport (1.7 percent) also made significant upward contributions to the transport group.

The most significant downward contribution came from lower prices for purchase of second-hand motor cars (down 0.9 percent).

The transport group increased 9.6 percent from the June 2007 quarter to the June 2008 quarter. The most significant individual upward contributions came from higher prices for petrol (up 25.9 percent). If petrol prices had remained constant from the June 2007 quarter to the June 2008 quarter, the CPI would have increased 2.7 percent.

 

Food

Prices for the food group rose 2.2 percent in the June 2008 quarter, following increases of 1.8 percent and 1.5 percent in the March 2008 and December 2007 quarters, respectively. All five of the food subgroups increased in the June 2008 quarter. The most significant upward contribution came from higher prices for the grocery food subgroup (up 2.3 percent). This is followed by, in order of significance: fruit and vegetables (up 4.9 percent), restaurant meals and ready-to-eat food (up 2.0 percent), meat, poultry and fish (up 1.3 percent), and non-alcoholic beverages (up 0.6 percent).

Within the grocery food subgroup the main contributors to the 2.3 percent increase were higher prices for bread (up 4.0 percent) and snack foods (up 6.5 percent).

The food group increased 6.9 percent from the June 2007 quarter to the June 2008 quarter. The most significant upward contribution came from higher prices for the grocery food subgroup (up 11.4 percent). This was followed by, in order of significance: restaurant meals and ready-to-eat food (up 5.3 percent), fruit and vegetables (up 4.0 percent), meat, poultry and fish (up 2.9 percent), and non-alcoholic beverages (up 4.6 percent) subgroups.

Housing and household utilities

The housing and household utilities group increased 1.2 percent in the June 2008 quarter, following increases of 1.0 percent and 0.9 percent in the March 2008 and December 2007 quarters, respectively.

Prices for electricity rose 3.6 percent in the June 2008 quarter, following increases of 0.8 percent and 1.2 percent in the March 2008 and December 2007 quarters, respectively.

Prices for the purchase of new housing increased 1.1 percent in the June 2008 quarter, following increases of 0.9 percent and 1.3 percent in the March 2008 and December 2007 quarters, respectively. Respondents were asked to indicate reasons for any reported changes in their prices. Of the respondents reporting increases in the June 2008 quarter, 93 percent cited higher prices for construction components as a contributing factor to the increase.

Actual rentals for housing rose 0.7 percent in the June 2008 quarter, following rises of 1.2 percent and 0.5 percent in the March 2008 and December 2007 quarters, respectively. Actual rentals for housing has now increased every quarter since June 2001.

The housing and household utilities group increased 5.0 percent from the June 2007 quarter to the June 2008 quarter. The most significant upward contributions came from higher prices for the purchase of new housing (up 5.2 percent), electricity (up 6.6 percent), actual rentals for housing (up 3.1 percent), and local authority rates and payments (up 6.7 percent).

 

Other groups

In the June 2008 quarter, upward movements were also recorded for the following groups: health (up 1.0 percent), clothing and footwear (up 0.6 percent), miscellaneous goods and services (up 0.4 percent), household contents and services (up 0.3 percent), and communication (up 0.5 percent). Combined, these groups contributed 1.46 index points to the overall CPI movement.

The 1.0 percent increase in health was driven by a 1.2 percent increase in medical services (up 1.7 percent).

The education group recorded no overall change.

In the June 2008 quarter, the recreation and culture subgroup (down 0.5 percent) and the alcoholic beverages and tobacco subgroup (down 0.2 percent) recorded downward contributions. Combined, these two subgroups contributed -0.69 index points to the overall CPI movement.

The 0.5 percent fall in recreation and culture subgroup was mainly driven by lower prices for audio-visual and computing equipment (down 4.4 percent).

For technical information contact:
David Kim or Daniel Griffiths
Wellington 04 931 4600
Email: info@stats.govt.nz 

Release of the reweighted CPI for the September 2008 quarter

The release of the September 2008 quarter CPI will be a week later than usual, due to the implementation of the regular review of the index.

The September 2008 quarter CPI will be published on 21 October 2008, to allow time to implement changes made as part of the review. The index will incorporate:

• an updated basket of goods and services
• an updated expenditure-weighting pattern.

An information paper on the CPI review will be released on 7 October 2008. The paper will fully document the review, and include:

• the new expenditure weights down to the third level of the new expenditure classification
• details of changes made to the basket of representative goods and services
• the table layout that will be used for the September 2006 quarter Hot Off The Press and subsequent releases.

The information paper will be available on Statistics New Zealand's website and it will be sent to all CPI Hot Off The Press subscribers.

The reweighted Food Price Index (FPI) for July will also be released later than usual, on 25 August 2008. The August 2008 FPI will be published on 11 September, and the September 2008 FPI on 21 October, the same day as the reweighted CPI for the September 2008 quarter.

Subsequent CPI and FPI releases will be published at the usual times.

For further information or to join the list of interested parties please contact:
Chris Pike or Daniel Griffiths
Wellington 04 931 4600
Email: info@stats.govt.nz