CPI Edges Up 0.2% in March Quarter
April 19, 2016 New Zealand Taxation
Increasing taxes on cigarettes have pushed New Zealand’s CPI upward, despite falls in price of travel and recreation.
On April 18th Statistics New Zealand released the latest data on the Consumer Price Index in New Zealand, showing a rise of 0.2 percent over the March 2016 quarter.
The increase to the CPI was caused mainly by an increase in the price of food, alcohol and tobacco, and housing, which contributed 0.216 points, 0.264 points, and 0.136 points, respectively.
The increases were countered by decreases to the prices of transport and recreation, which contributed -0.5 points, and -0.09 points, respectively.
It was noted that among alcohol and tobacco, the price of cigarettes was the biggest upward contributor, and the government’s annual hikes to the rate of excise taxes on tobacco were the reason.
Among the costs of transport, the price of petrol and airfares was the biggest downward contributor, with strong commercial competition and the decreasing prices of oil leading to greater bargains.
The CPI increase for the year ending March 2016 is 0.4 percent, approximately 0.1 percent higher than the CPI rate for the year ending December 2015.