Prices stable

April 19th, 2014 at 4:00 pm by David Farrar

Stats NZ reports:

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays.

Cigarette and tobacco prices rose 10.2 percent, following an 11.3 percent rise in excise duty in January. “The CPI without cigarettes and tobacco showed no change in the March quarter,” prices manager Chris Pike said.

That means no cost of living increase, if you are not a smoker.

Also of interest is that despite the scare stories about power price increases of 24%, the quarterly increase in the cost of electricity for households is only 0.07%. Remember that figure.

Also food prices are down 0.3% in March, and are only 1.2% higher than a year ago.

 

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19 Responses to “Prices stable”

  1. Colville (2,272 comments) says:

    “ONLY “11.2 % higher than a year a ago?

    I hope that is a typo.

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  2. ben (2,380 comments) says:

    Food is up 0.2% in the quarter and 0.8% for the year to March.

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  3. Viking2 (11,490 comments) says:

    So no need for interest rate increases then?

    yeah right.

    Now where’s that TUI.

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  4. mjw (396 comments) says:

    Deflation, anyone?

    Actually, I wouldn’t get too carried away about power prices. I suspect most companies have announced increases that won’t be seen in bills for another month or so. Just in time for winter …

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  5. Viking2 (11,490 comments) says:

    then of course there is this. The guy is obviously a Pavelitch fan.
    Mad as a snake.

    New Zealand’s economic boom is about to pop with dramatic results, the US business magazine Forbes reports today.

    In a study by economic analyst Jesse Colombo – who specialises in writing on economic bubbles – the magazine gives 12 reasons why New Zealand is facing an economic disaster and “heading for a crisis”.

    http://www.stuff.co.nz/business/money/9959525/NZ-bubble-going-to-burst

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  6. mandk (998 comments) says:

    “Also of interest is that despite the scare stories about power price increases of 24%, the quarterly increase in the cost of electricity for households is only 0.07%”

    But, but, but, that can’t be right. That nice Mr Shearer told me on the Labour Party website that power prices are soaring.

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  7. SPC (5,643 comments) says:

    The increase in power prices does not usually occur in the summer quarter, its nearly always a period with little price movement for households.

    And it is not the right time to be smug about this as transmission costs are rising because of work being done and these costs are being passed onto retailers – this means price increases for most from April this year and again next year.

    Then there is the never ending increases in house insurance premiums.

    And to come on top of this – mortgage rate increases are a certainty regardless of government policy or make-up.

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  8. OneTrack (3,116 comments) says:

    mandk – “But, but, but, that can’t be right. That nice Mr Shearer told me on the Labour Party website that power prices are soaring.”

    That’s an old article from 2006, when Helen was bleeding power consumers dry using the country’s government owned “assets”.

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  9. Alan (1,087 comments) says:

    CPI at 0.3% is far too low, needs to be higher. 3% would be fine

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  10. Fisiani (1,039 comments) says:

    The good news keeps coming/ So many dyed in the wool Labour voters are waking up . We have reached a tipping point and National will probably grow 1%/month and Labour will fall 1% a month thus National going from 46% to 51% and labour falling from29% to 24%.

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  11. Lucia Maria (2,468 comments) says:

    There will be a cost of living increase to everyone that has a mortgage.

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  12. jcuk (693 comments) says:

    Contact sent me a a nice letter saying they had to increase prices but the amount was so small I didn’t bother to work it out, what WILL increase my power bill are the autumn/winter temperatures causing me to use more power :(

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  13. Dave_1924 (116 comments) says:

    Electricity prices are due to rise – as another commentator said above – as Transpower’s huge CAPEX projects are completed and start feeding into consumers monthly bills.

    Its time for all power consumers to be aware of what they pay and start shopping around for better prices

    As for food prices – if fruit and vege were fairly priced by the Supermarkets lots of us would be a little happy. Drove AKL/WGTN return recently. Roadside fruit and vege prices were significantly lower than supermarkets. 50 cents for an avocado any one?

    But with those low levels of CPI increase – how the hell can the Reserve Bank justify interest rate rises? Yes I know they are looking out 18 months and trying to control future inflationary pressures, but surely t’s about time that the interest rate regime in this country is re-visited.

    My proposal is simple. Differential rates applied by region. There is absolutely NO NEED for people in the Manawatu, on the West Coast, in Taranaki or Poverty Bay to have their mortgage rates to go up because Auckland has a out of kilter property market.

    How hard would that to be achieved? Doubtless someone well tell me it’s technically difficult yada yada yada. But frankly we paid top dollar for RBNZ staffers and the Guv’nor so they can sort something practical out…. And as for Banks – they can apply a small amount of there generous profits to get their systems able to handle regional variation in lending rates…

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  14. EAD (1,128 comments) says:

    There are lies, damned lies and government statistics. The progressive social democratic National Govt inherited an addiction to fiddled and selective interpretation of inflation and growth figures, having found that the media is not interested or mentally capable of stripping down the raw numbers to arrive at the truth. The government has happily supplied and increasingly made up set to palm off onto pleb land. If you think government debt is large wait until it hits one hundred billion or even two.

    A new version of the Soviet grain harvest/tratcor production report has been created, and its mostly simply made up fantasy. At what point did government make the conscious decision to begin lying? Vote a Conservative/Act regime in and the sudden change from made up lies to the real actual figures will come as a wake up call, after years of a wall of lies and deception our real predicament when it is finally revealed will shock us to the core.

    What people today call inflation is not inflation, i.e., the increase in the quantity of money and credit, but the general rise in commodity prices and wage rates which is the inevitable consequence of inflation.

    https://mises.org/money.asp

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  15. Johnboy (16,659 comments) says:

    I’m awfully looking forward to rises in the OCR to boost the interest on the jolly old investments.

    Fuck the peasants with mortgages I say! :)

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  16. Recidivist_offender (28 comments) says:

    Vote a conservative/act government in and there’ll be civil war.

    Atheism for life! Nihilism for life! Burn the churches, mosques, synagogues and temples. Theism is psychosis.

    Yes to abortion. Yes to euthanasia/ suicide. Yes to state atheism.

    No one loves you. Your life is worthless. There is no afterlife. And your body disgusting sack of meat, blood, bone and shit. Great for fertilizer.

    Incest is fine, just if you get pregnant abort it and use the foetus for fertilizer.

    Enjoy the rest of your objectively insignificant pathetic lives. Remember, we are all alone in the end and no one truly gives a fuck about you. I certainly don’t. LMAO. In the fine libertarian tradition of Ayn Rayn, selfishness is a virtue. Survival of the fittest! There is no objective quantifiable morality, its all a human conceptual construct. So, fuck it then, just murder people if it gets you ahead in life. Its darwinism, evolution baby, get used to it.

    Ta ta, fuck you all.

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  17. Paulus (2,632 comments) says:

    If you look carefully you will see that the Colombo concept of a New Zealand crash was not actually in the Forbes Magazine but on a side website of Forbes.
    Man is a fool to himself in most of his prognostications -he ridicules himself often.
    But that is what the media does regularly, not only in New Zealand.
    Of course our so called media parrot it without question or research.
    Picks up obtuse facts with no qualification and makes a story to sell.

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  18. mikenmild (11,247 comments) says:

    True, the Forbes.com website has no real relation to Forbes Magazine and is really just a blogging site.

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  19. martinh (1,257 comments) says:

    If housing is going up 12% a year in Auckland and rising in other places how can the cost of living not be going up?
    As lucia said, interest rates are going up too so everyone with a mortgage will be paying more

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