WELLINGTON - Motorists bore the brunt of inflation in the September quarter, with petrol and relicensing fees accounting for most of the 0.6 per cent rise in the Consumers Price Index.
The increase, marginally below the consensus forecast of 0.7 per cent, did not ruffle money markets and thegeneral expectation that the Reserve Bank will raise the official cash rate next month stands.
Labour finance spokesman Michael Cullen said the figures showed there was no immediate pressure on the bank to raise rates, as the quarterly increase was mostly the result of one-off factors.
But private sector and Treasury forecasts have the CPI rising to 2.5 or 2.7 per cent by next March, on an annual basis, raising concerns about inflationary expectations and second-round effects.
The latest National Bank business confidence survey showed price-raising intentions of companies at their highest level for 41/2 years.
The biggest contributor to September's increase was an 8 per cent rise in petrol, enough on its own to add 0.24 per cent to the CPI. Statistics New Zealand warned of a further substantial rise from petrol in the December quarter.
Vehicle relicensing fees rose 25 per cent, reflecting a rise in ACC levies. That raised the CPI by 0.19 per cent while higher local body rates added another 0.1 per cent.
The main offsetting price falls came from fruit and vegetables and phone charges. Car prices fell, but ANZ Bank chief economist Bernard Hodgetts said that the recent fall in the kiwi against the yen had seen at least two suppliers announce price rises.
The Reserve Bank splits the components of the CPI into tradeables and non-tradeables, the former being those affected by international prices such as imports or goods which compete with imports.
