CPI INCREASE DRIVEN BY HOUSING-RELATED COSTS?

By NZHJ October 16, 2018 Industry news

Stats NZ's September quarter CPI data highlights construction costs as a key driver of the latest increase.

The Consumers Price Index (CPI) for the September 2018 year rose by 1.9%, driven mainly by the Housing & Household Utilities group, says Stats NZ.

Although not the sole driver of this increase, within this group, construction prices were +4.1% in the year to September 2018 and, says Stats NZ: "While construction inflation has cooled from the high of 6.7% in the March 2017 quarter, it remains a strong contributor to annual inflation."

Around the country, the same data shows that regional construction prices are catching up with those in the main centres.

The cost of newly-built houses was +3.3% in Auckland and +2.5% in Wellington, while the Rest of the North Island was +6.6%.

In the South Island, construction costs were +1% in Canterbury, compared with 7.6% for the Rest of the South Island.

By way of comparison with the Housing & Household Utilities group, Transport was +5.6% (with petrol +19%), while Alcoholic Beverages & Tobacco was +4.7%.

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