Seasonal fall in vegetable prices
While prices for transport and rents were up, vegetable prices fell 13 percent in the December 2019 quarter. There were seasonal falls for tomatoes, cucumbers, lettuce, and capsicums. Prices for these vegetables usually fall in December quarters, as new season produce hits the shelves.
Domestic inflation tops 3 percent again
Domestic or non-tradable inflation remains close to its highest annual increase since 2011, increasing 3.1 percent in the year to December 2019. This follows an 8-year high of 3.2 percent in the year to September 2019. The latest annual increase was influenced by higher prices for rents, cigarettes and tobacco (which had a large tax increase in January 2019), local authority rates, and construction of new houses.
The latest tax increase for cigarettes and tobacco, in January 2020, will show up in the March 2020 quarter CPI.
Non-tradable inflation measures goods and services that do not face foreign competition. It includes many housing costs such as rent, construction, rates and electricity, as well as insurance, restaurant meals, and many services.
Correction to domestic airfares
Stats NZ has corrected prices for domestic air transport back to March 2017 in response to an error. The correction has no impact on the overall CPI, nor on price movements for domestic air transport for the December 2019 quarter.
See Consumers price index: December 2019 quarter for more information about this.