New Zealand annual inflation growth slows to 6.7% in March

WELLINGTON: New Zealand's consumer price index increased 6.7 per cent in the 12 months to March 2023, compared to a 7.2 per cent increase recorded a year earlier, according to figures released on Thursday by the national statistics department.

"Inflation is still at levels not seen since the 1990s," Stats NZ consumer prices senior manager Nicola Growden said.

Food was the largest contributor to the March 2023 annual inflation rate. This was due to rising prices for vegetables, ready-to-eat food, and milk, cheese, and eggs, Growden said.

Vegetable prices increased 22 per cent in the 12 months to March 2023, while ready-to-eat food and milk, cheese and eggs increased 9.7 per cent and 15 per cent, respectively, reports Xinhua news agency citing the statistics.

After food, the next largest contributor to the annual increase was housing and household utilities, according to Stats NZ.

The increase was due to rising prices for both construction and rents.

Prices for building a new house increased 11 per cent in the 12 months to March 2023, compared to a 14 per cent increase in the 12 months to December 2022, Growden said.

"Respondents reported that higher costs of materials and labour continued to drive the increase of building a new home," she said.

Rents increased 4.3 per cent in the 12 months to March 2023, compared to an increase of 4.4 per cent in the 12 months to December 2022, statistics show.

Recreation and culture was another largest contributor, driven by rising prices for domestic accommodation services and pets and pet-related products, such as pet food, Growden said.

Slightly offsetting these increases was a decrease in petrol, down 8.3 per cent in the 12 months to March 2023, compared to a 2.4 per cent increase in the 12 months to December 2022, she added.