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New Zealand's Annual Inflation Rises in June Quarter

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New Zealand's annual consumer inflation increased by 4.1% in the June quarter, up from a 3.1% increase in the 12 months to the March quarter, data from Stats NZ showed Tuesday.

The consensus forecast was for an increase of 4%, according to Trading Economics.

Petrol was the biggest driver of the annual inflation rate, rising 26.5%, while diesel prices surged 71%.

The Consumer Price Index (CPI) would have risen 2.9% in the 12 months to the June quarter if petrol and diesel prices had remained unchanged, the report said.

"Higher petrol prices accounted for almost a quarter of the 4.1% annual increase," said Nicola Growden, prices and deflators spokesperson.

Other key drivers of annual inflation included electricity, which rose 12%, local authority rates and payments, which increased 8.8%, and the construction of new housing, which rose 2.7%.

On a quarter-on-quarter basis, inflation was up 1.5% in the June quarter after a 0.9% gain in the March quarter.

Higher petrol prices, which rose over 20%, were the main contributor to the quarterly inflation rate, while diesel prices increased 47.7%. CPI would have risen 0.5% in the June quarter excluding the impact of petrol and diesel prices.

"Together, petrol and diesel accounted for almost two-thirds of the 1.5% quarterly increase," Growden added.

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