Inflation hits 1.9%

Stats NZ reports:

The consumers price index (CPI) increased 1.9 percent in the September 2018 year, driven by higher petrol prices, Stats NZ said today.

This follows a 1.5 percent annual rate for the June 2018 year. For the September 2018 quarter, the inflation rate was 0.9 percent.

“Petrol prices increased 19 percent in the September 2018 year,” prices senior manager Paul Pascoe said. “This is the highest annual increase since June 2011.” …

A 3.5 cents per litre nationwide increase in petrol tax was introduced on 30 September. The effects of this price increase will be seen in the December 2018 quarter.

So the excise tax increase not yet taken into account.

1.9% inflation isn’t too bad. But if it starts to exceed 2%, then the Reserve Bank might look towards hiking interest rates, which will hit home owners.

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