The main inflation measure - the Consumers Price Index (CPI) has fallen by 0.2 per cent in the December quarter.
Food prices fell 2.4 per cent, with the main contribution coming from lower vegetable prices.
The data was below expectations. In a Reuters poll of economists the median prediction was
for no change to the CPI in the three month period
Separately, the food price index also released by Statistics NZ today fell 0.3 per cent in the month of December from November.
Transport prices rose 1.5 per cent with higher prices for international air transport and second-hand motor cars.
From the December 2008 quarter to the December 2009 quarter, the CPI rose 2 per cent.
The 0.2 per cent fall followed increases of 1.3 per cent and 0.6 per cent in the September 2009 and June 2009 quarters, respectively.
Four groups decreased, with food (down 2.4 per cent) being the most significant contributor.
Other downward contributions came from alcoholic beverages and tobacco (down 1.0 per cent), communication (down 0.6 per cent), and household contents and services (down 0.1 per cent), while the education group recorded no overall change.
Six groups recorded increases: transport (up 1.5 per cent), clothing and footwear (up 1.8 per cent), housing and household utilities (up 0.2 per cent), recreation and culture (up 0.4 per cent), health (up 0.6 per cent), and miscellaneous goods and services (up 0.1 per cent).
The most significant individual downward contributions came from lower prices for lettuce (down 63.5 per cent), audio-visual equipment (down 9 per cent), and tomatoes (down 32.3 per cent).
NZ HERALD STAFF/ NZPA
