Consumers Price Index: June 2009 quarter

Consumers price index quarterly movement

The consumers price index (CPI) recorded an increase of 0.6 percent in the June 2009 quarter, following an increase of 0.3 percent in the March 2009 quarter and a decrease of 0.5 percent in the December 2008 quarter.

Nine groups increased, with food (up 0.9 percent), transport (up 0.6 percent), and housing and household utilities (up 0.4 percent) making the most significant contributions. Other upward contributions came from clothing and footwear (up 1.8 percent), household contents and services (up 1.5 percent), miscellaneous goods and services (up 1.0 percent), health (up 0.9 percent), alcoholic beverages and tobacco (up 0.5 percent), and communication (up 0.7 percent).

The education group remained unchanged. Recreation and culture (down 1.2 percent) was the only group to record a fall.

The most significant individual upward contributions came from higher prices for petrol (up 3.2 percent), and the purchase of second-hand cars (up 4.4 percent).

The most significant downward contributions came from lower prices for international air transport (down 14.4 percent) and overseas package holidays (down 17.7 percent).

Index Points Contribution to Consumers Price Index

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

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Distribution of item-level movements

The table below outlines the distribution of price movements in the March 2009 and June 2009 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 2009 quarter:

• the weighted average price increase remained about the same, while the weighted average price decrease rose significantly
• the percentage of expenditure weight of items that increased in price has risen, while the percentage of expenditure weight of items that decreased in price has fallen
• the percentage of expenditure weight of items that increased in price was more than three times the percentage of expenditure weight of items that decreased in price.

This resulted in an increase of 0.6 percent in the CPI in the June 2009 quarter, following an increase of 0.3 percent in the March 2009 quarter.

CPI annual movement

The CPI increased 1.9 percent in the year from the June 2008 quarter to the June 2009 quarter, following increases of 3.0 percent and 3.4 percent for the years to the March 2009 and December 2008 quarters, respectively.

The last time the annual CPI increase was lower than this was in the year to the September 2007 quarter, and the time before that was in the year to the March 2004 quarter.

Nine of the 11 groups in the CPI made upward contributions to the increase in the year to the June 2009 quarter. The most significant upward contributions came from the food (up 7.5 percent), and housing and household utilities (up 2.8 percent) groups.

The transport group (down 6.6 percent) and the communication group (down 0.9 percent) made downward contributions.

The most significant individual upward contributions came from higher prices for electricity (up 5.4 percent), local authority rates and payments (up 5.7 percent), and actual rentals for housing (up 1.7 percent).

The most significant individual downward contributions came from lower prices for petrol (down 17.0 percent) and international air transport (down 20.7 percent).

CPI all groups and tradable and non-tradable component series

In the June 2009 quarter, the tradable component increased 0.8 percent, following a decrease of 0.4 percent in the March 2009 quarter. The most significant upward contribution to the tradable component came from petrol and purchase of second-hand cars. The tradable component would have increased 0.5 percent if petrol had remained constant from the March 2009 quarter.

The non-tradable component increased 0.5 percent, following an increase of 0.7 percent in the March 2009 quarter. The most significant upward contributions came from electricity and beer.

For the year to the June 2009 quarter, the non-tradable component increased 3.3 percent. Significant upward contributions came from electricity, local authority rates and payments, actual rentals for housing, and beer. The 3.3 percent annual increase in the non-tradable component is the lowest since the year to the June 2002 quarter.

The tradable component rose 0.2 percent for the year to the June 2009 quarter. The most significant downward contribution to the tradable component came from petrol. If petrol and diesel prices had remained constant from the June 2008 quarter to the June 2009 quarter, the tradable component would have increased 2.7 percent. 

 

Food

Prices for the food group rose 0.9 percent in the June 2009 quarter, following rises of 1.2 percent and 1.5 percent in the March 2009 and December 2008 quarters, respectively. This is the smallest quarterly increase since the June 2007 quarter.

All of the food subgroups made significant upward contributions, with higher prices for grocery food (up 0.6 percent), meat, poultry and fish (up 1.1 percent), restaurant meals and ready-to-eat food (up 0.8 percent), fruit and vegetables (up 1.2 percent), and non-alcoholic beverages (up 1.5 percent).

The most significant upward contribution came from higher prices for vegetables (up 6.9 percent), with higher prices for tomatoes (up 55.5 percent) and lettuce (up 47.8 percent). Higher prices for vegetables are not unusual during the June quarter, but have been further affected by unusually cold weather that hampered growing conditions.

The most significant downward contribution came from fruit (down 6.0 percent), with lower prices for kiwifruit (down 68.9 percent).

The food group increased 7.5 percent from the June 2008 quarter to the June 2009 quarter, accounting for over two-thirds of the increase in the CPI over this period. All five of the food subgroups increased in price, with the most significant contribution coming from grocery food (up 7.0 percent).

Transport

Prices for the transport group increased 0.6 percent in the June 2009 quarter, following decreases of 1.5 percent and 7.6 percent in the March 2009 and December 2008 quarters, respectively.

The most significant individual upward contributions came from higher prices for petrol (up 3.2 percent) and purchase of second-hand cars (up 4.4 percent). Petrol prices, which had been falling from February to April 2009, rose steadily back to the levels observed in February 2009 by June 2009.

The most significant downward contribution came from lower prices for international air travel (down 14.4 percent). This is the second consecutive quarterly fall in the international air transport index, which is now at its lowest level since the June 1981 quarter. Domestic air transport prices (down 2.0 percent) also fell in the June 2009 quarter, partly reflecting the initial impact of a new entrant.

The transport group decreased 6.6 percent from the June 2008 quarter to the June 2009 quarter. The most significant individual downward contributions came from lower prices for petrol (down 17.0 percent), international air transport (down 20.7 percent), and diesel (down 38.3 percent). Prices for international air transport recorded the biggest annual fall since the year to the June 2004 quarter, when they fell 21.2 percent. If petrol and diesel prices had remained constant from the June 2008 quarter to the June 2009 quarter, the CPI would have increased 3.0 percent.  

Housing and household utilities

The housing and household utilities group increased 0.4 percent in the June 2009 quarter, following increases of 0.3 percent and 0.6 percent in the March 2009 and December 2008 quarters, respectively.

Significant contributions came from higher prices for electricity (up 1.6 percent) and actual rentals for housing (up 0.3 percent).

Prices for the purchase of housing increased 0.2 percent in the June 2009 quarter, following no change in the March 2009 quarter and a decrease of 0.2 percent in the December 2008 quarter. Of the prices reported by respondents in the June 2009 quarter and after adjusting for quality change, 80 percent showed no change in price, 14 percent showed increases, and 6 percent showed decreases.

The housing and household utilities group increased 2.8 percent from the June 2008 quarter to the June 2009 quarter. This is the lowest annual increase since the year to the March 2002 quarter.

The most significant upward contributions for the year to the June 2009 quarter came from higher prices for electricity (up 5.4 percent), local authority rates and payments (up 5.7 percent), actual rentals for housing (up 1.7 percent), and the purchase of new housing (up 1.3 percent). For the first time since the year to the September 1999 quarter, the annual increase for purchase of new housing is lower than rentals for housing. 

Recreation and culture

The recreation and culture group decreased 1.2 percent in the June 2009 quarter, following a decrease of 0.6 percent in the March 2009 quarter and an increase of 1.5 percent in the December 2008 quarter.

The most significant downward contribution came from lower prices for overseas package holidays (down 17.7 percent).

The most significant upward contribution came from higher prices for stationery and drawing materials (up 14.5 percent). This follows a 7.5 percent decrease in the March 2009 quarter, influenced by back-to-school specials.

The recreation and culture group increased 0.5 percent from the June 2008 quarter to the June 2009 quarter, with the most significant upward contribution coming from pet food (up 14.5 percent). The most significant downward contribution came from lower prices for audio-visual and computing equipment (down 10.7 percent).

Other groups

In the June 2009 quarter, upward movements were recorded for the following groups: clothing and footwear (up 1.8 percent), household contents and services (up 1.5 percent), miscellaneous goods and services (up 1.0 percent), health (up 0.9 percent), alcoholic beverages and tobacco (up 0.5 percent), and communication (up 0.7 percent). Combined, these groups contributed 3.67 index points to the overall CPI movement.

The most significant upward contribution to the other groups came from higher prices for beer (up 2.8 percent), mainly driven by beer consumed off licensed premises (up 4.4 percent), and major household appliances (up 3.1 percent).

The education group remained unchanged overall during the June 2009 quarter. Early childhood education prices fell 0.1 percent, influenced by higher rates for the childcare subsidy administered by Work and Income New Zealand.

In the June 2009 quarter, a downward movement was recorded for recreation and culture (down 1.2 percent). This group contributed -1.21 index points to the overall CPI movement.

 

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

Next release ...

Consumers Price Index: September 2009 quarter will be released on 15 October 2009.