The rising costs of running a house pushes upward inflation

The operating cost of a house has increased by 3.1% in the year, according to the latest figures from the Consumer Price Index of Stats NZ

Prices Higher housing and utilities increased 0.9% this quarter. New Zealand's inflation rate in the second quarter was slightly lower than what economists expected, but in line with central bank forecasts, as housing prices continued to rise.

The consumer price index rose 0.4% in the quarter ended June 30, while annual inflation was 1.5%, Statistics New Zealand said. Economists were expecting the quarterly CPI to rise 0.5% for an annual increase of 1.6%, according to the median in a survey of 13 economists surveyed by Bloomberg. The Reserve Bank had recorded a quarterly increase of 0.4 percent and an annual increase of 1.5 percent.

The central bank's mandate is to maintain annual inflation between 1 and 3% over the medium term, focusing on-point. However, inflation remained stubbornly low and the central bank reported that the official cash rate should remain at a record 1.75 for some time ahead given the lack of inflationary pressure. It is unlikely that today 's data will upset this view. The New Zealand dollar was virtually unchanged at 67.70 US cents

The main driver of the quarterly gain was housing-related prices, up 0.9% in the quarter and 3.1% annually.

one hundred during the quarter and 2.5% higher for the year. Rates of ownership and related services remained unchanged during the quarter, an annual increase of 3.1%. Household energy prices, which include electricity, gas and solid fuels, grew by 1.6% a quarter and 2.8% a year.

"New Zealanders pay more to maintain their homes," said Pascoe. in a report. The rates, the maintenance services and the home insurance are all higher than they were last year.

The home insurance increased by 4% over the quarter and by 18% over the year. The purchase of new homes rose 3.9% over the year and 1.1% over the quarter.

Gasoline prices rose 3.2% in the quarter for an annual gain of 10.5%, also supporting the CPI hike. ] Transportation group prices – including airfare – increased 0.2% in the quarter and 2% for the year. According to Stats NZ, higher gasoline prices were offset by a quarterly decline of 3.3% in used car prices: "It was cheaper to buy a car from the outside." 39, occasion this quarter. Food prices, meanwhile, rose 0.8 percent in the quarter, as fruit and vegetable prices rose 3.1 percent. Food prices rose 0.7% in 1999.

On the other side of the ledger, prices for home entertainment dropped, with cheaper audio-visual equipment and lower prices for home entertainment. TV channels, said NZ Stats. Audiovisual equipment prices fell 15% in the quarter, while television subscription prices dropped 7.2%. Sky Network Television's shares remained unchanged at $ 2.60

The CPI of tradable goods, which includes internationally competitive goods and services, rose 0.3% in the quarter and 0 , 1% over the year. Non-tradable inflation, which focuses on domestic goods and services, rose 0.4% quarter on quarter for an annual increase of 2.5%.

– BusinessDesk