Consumers Price Index: March 2009 quarter

Consumers Price Index quarterly movement

The Consumers Price Index (CPI) recorded an increase of 0.3 percent in the March 2009 quarter, following a decrease of 0.5 percent, and an increase of 1.5 percent, in the December and September 2008 quarters, respectively.

Seven groups increased, with food (up 1.2 percent), and alcoholic beverages and tobacco (up 1.8 percent) being the most significant contributors. Other upward contributions came from education (up 4.2 percent), miscellaneous goods and services (up 0.9 percent), housing and household utilities (up 0.3 percent), health (up 0.8 percent), and household contents and services (up 0.2 percent).

Four groups decreased, with transport (down 1.5 percent) being the most significant contributor. Other downward contributions came from recreation and culture (down 0.6 percent), clothing and footwear (down 0.4 percent), and communication (down 0.1 percent).

The most significant individual upward contributions came from higher prices for second-hand cars (up 3.5 percent), cigarettes (up 4.2 percent), and new cars (up 3.7 percent).

The most significant downward contributions came from lower prices for international air transport (down 16.5 percent), diesel (down 19.2 percent), and overseas package holidays (down 7.1 percent).

 

 

Note: Index points contributions may not sum to totals due to rounding.

 

Distribution of item-level movements

The table below outlines the distribution of price movements in the December 2008 and March 2009 quarters. The CPI has been partitioned into those national item-level indexes that increased, showed no change, or decreased.

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CPI annual movement

The CPI increased 3.0 percent in the year from the March 2008 quarter to the March 2009 quarter, following increases of 3.4 percent and 5.1 percent for the years to the December and September 2008 quarters, respectively.

Nine of the 11 groups in the CPI made upward contributions to the increase in the year to the March 2009 quarter. The most significant upward contributions came from the food (up 8.8 percent), and housing and household utilities (up 3.6 percent) groups.

The transport group (down 2.6 percent) and the communication group (down 1.1 percent) made downward contributions.

The most significant individual upward contributions came from higher prices for electricity (up 7.5 percent), actual rentals for housing (up 2.1 percent), and ready-to-eat food (up 6.2 percent).

The most significant individual downward contributions came from lower prices for petrol (down 9.3 percent), audio-visual equipment (down 20.8 percent), and second-hand cars (down 4.5 percent).

CPI all groups and tradable and non-tradable component series

In the March 2009 quarter, the tradable component decreased 0.4 percent, following a decrease of 2.1 percent in the December 2008 quarter. The most significant downward contribution to the tradable component came from international air transport. The tradable component would have increased 0.3 percent if international air transport had remained constant from the December 2008 quarter.

The non-tradable component increased 0.7 percent, following an increase of 0.8 percent in the December 2008 quarter. The most significant upward contributions came from cigarettes and tobacco, and education.

The tradable component rose 1.7 percent for the year to the March 2009 quarter. The most significant downward contribution to the tradable component came from petrol. If petrol and diesel prices had remained constant from the March 2008 quarter to the March 2009 quarter, the tradable component would have increased 2.8 percent.

For the year to the March 2009 quarter, the non-tradable component increased 3.8 percent. Significant upward contributions came from electricity, actual rentals for housing, and ready-to-eat food.

 

 

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Food

Prices for the food group rose 1.2 percent in the March 2009 quarter, following rises of 1.5 percent and 3.7 percent in the December and September 2008 quarters, respectively. This is the smallest quarterly increase since the September 2007 quarter. If food prices had remained constant from the December 2008 quarter, the CPI would also have remained constant.

The most significant upward contributions came from higher prices for the grocery food (up 1.4 percent), and non-alcoholic beverages (up 3.5 percent) subgroups. Within the two subgroups, upward contributions came from higher prices for soft drinks (up 3.9 percent) and bread (up 4.6 percent).

A downward contribution came from the fruit and vegetables subgroup (down 0.4 percent), driven by lower prices for vegetables (down 5.5 percent). The most significant downward contributions came from lower prices for potatoes (down 9.8 percent) and tomatoes (down 13.3 percent). In the March 2009 quarter, an upward contribution came from fruit (up 6.9 percent), largely driven by kiwifruit (up 99.7 percent). This was partly offset by lower prices for apples (down 17.7 percent).

The food group increased 8.8 percent from the March 2008 quarter to the March 2009 quarter, accounting for half the increase in the CPI for the year to the March 2009 quarter. All five of the food subgroups increased in price, with the most significant contribution coming from grocery food (up 8.9 percent). While fruit and vegetable prices were down 0.4 percent in the March 2009 quarter, prices were up 12.2 percent for the year.  

 

 

Alcoholic beverages and tobacco

Prices for the alcoholic beverages and tobacco group rose 1.8 percent in the March 2009 quarter, following rises of 0.4 percent and 1.3 percent in the December and September 2008 quarters, respectively.

The most significant upward contribution came from higher prices for cigarettes and tobacco (up 4.3 percent); the excise duty on cigarettes and tobacco increased 5.07 percent on 1 January 2009. Alcoholic beverages also increased (up 0.6 percent).

The alcoholic beverages and tobacco group increased 3.4 percent from the March 2008 quarter to the March 2009 quarter, with alcoholic beverages up 2.8 percent, and cigarettes and tobacco up 4.3 percent. The most significant individual upward contributions came from cigarettes (up 4.2 percent) and beer (up 3.2 percent).

 
 

 

Housing and household utilities

The housing and household utilities group increased 0.3 percent in the March 2009 quarter, following increases of 0.6 percent and 1.4 percent in the December and September 2008 quarters, respectively. This is the smallest increase since the June 2001 quarter.

The most significant individual upward contributions came from higher prices for actual rentals for housing (up 0.3 percent) and electricity (up 0.6 percent). Property maintenance materials also rose (up 0.8 percent), while property maintenance services remained unchanged. This is the first time property maintenance services has not increased since the June 1998 quarter.

Prices for the purchase of new housing recorded no overall change in the March 2009 quarter, following a decrease of 0.2 percent in the December 2008 quarter and an increase of 1.3 percent in the September 2008 quarter. A few remaining changes in the quality of new dwellings in Auckland and further north (resulting from amendments to the Building Act (2004) whereby new homes are required to be more energy efficient) were adjusted for this quarter. Of the prices reported by respondents in the March 2009 quarter, 77 percent showed no change in price (after adjusting for quality change), 17 percent showed increases, and 6 percent showed decreases.

The housing and household utilities group increased 3.6 percent from the March 2008 quarter to the March 2009 quarter. The most significant upward contributions came from higher prices for electricity (up 7.5 percent), actual rentals for housing (up 2.1 percent), local authority rates and payments (up 5.7 percent), and the purchase of new housing (up 2.2 percent).

 

 

Transport

Prices for the transport group fell 1.5 percent in the March 2009 quarter, following a decrease of 7.6 percent and an increase of 2.0 percent in the December and September 2008 quarters, respectively.

The most significant individual downward contributions came from lower prices for international air transport (down 16.5 percent), diesel (down 19.2 percent), and petrol (down 1.0 percent). International air transport prices usually fall in March quarters, following increases in December quarters. Following significant falls in petrol and diesel prices throughout the December 2008 quarter, petrol prices rose in February compared with January 2009 and December 2008, while diesel prices remained below the levels in December.

The most significant upward contributions came from higher prices for second-hand cars (up 3.5 percent) and new cars (up 3.7 percent).

The transport group decreased 2.6 percent from the March 2008 quarter to the March 2009 quarter. The most significant individual downward contributions came from lower prices for petrol (down 9.3 percent), second-hand cars (down 4.5 percent), and international air transport (down 5.8 percent). If petrol and diesel prices had remained constant from the March 2008 quarter to the March 2009 quarter, the CPI would have increased 3.4 percent. 

 

Other groups

In the March 2009 quarter, upward movements were recorded for the following groups: education (up 4.2 percent), miscellaneous goods and services (up 0.9 percent), health (up 0.8 percent), and household contents and services (up 0.2 percent). Combined, these groups contributed 2.02 index points to the overall CPI movement.

The most significant upward contribution to the other groups came from higher prices for tertiary and other post-school education (up 4.4 percent).

In the March 2009 quarter, downward movements were recorded for the following groups: recreation and culture (down 0.6 percent), clothing and footwear (down 0.4 percent), and communication (down 0.1 percent). Combined, these groups contributed -0.85 index points to the overall CPI movement.

The most significant downward contribution to the other groups came from lower prices for overseas package holidays (down 7.1 percent).

Trimmed means and weighted percentiles added to regular release

Please note that the trimmed means and weighted percentiles, previously published in supplementary tables 1 and 2, now appear in the regular CPI tables, as tables 11 and 12, respectively.


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

Next release ...

Consumers Price Index: June 2009 quarter will be released on 16 July 2009.