Stats NZ to deliver more in-depth monthly inflation data, including booze, fuel and travel

By adding petrol, travel and alcohol, StatsNZ will be publishing monthly price changes for around 44 per cent of New Zealand household spending,

New Zealanders will soon get more regular insight into the cost of living with Stats NZ announcing it will release monthly price change data for alcoholic beverages and tobacco, petrol and diesel, domestic and international airfares and accommodation services.

Stats NZ already releases food price and rent price data on a monthly basis but only produces a full Consumer Price Index (which delivers the official inflation figure) every three months.

Some economists and commentators have suggested that was making the Reserve Bank’s job more difficult - setting policy with a considerable lag around the inflation data.

“New Zealand, like the rest of the world, is currently experiencing high inflation. Decision-makers have asked for more frequent information about price changes to understand the impact on New Zealand households,” general manager of economic and environment insights Jason Attewell said.

“Stats NZ already releases monthly data on food and rent price changes, which make up about 30 per cent of New Zealand household spending. We have added a new series on petrol, travel and alcohol that will mean we publish price changes each month for around 44 per cent of New Zealand household spending,” Attewell said.

“The quarterly CPI will continue to be the official measure of household inflation.”

When accounting for goods and services that only change price annually (for example, tuition fees and council rates), StatsNZ will be publishing nearly half of the CPI basket as frequently as possible.

The new data releases will be combined with the existing food and rent data in a new release to be called Selected price indexes (SPI).

The additional price indexes utilise the remaining monthly data collections that have been added over time or have not been previously released. The Reserve Bank of New Zealand – Te Pūtea Matua (RBNZ) and the Treasury have welcomed the new release, Stats NZ said.

The RBNZ is a key user of critical macroeconomic data including quarterly CPI, labour market and GDP figures. RBNZ welcomes the new monthly price data as a valuable addition to a range of more timely monthly indicators.

“Getting reliable price data faster is critical to our job of controlling inflation and getting it back in our target band,” RBNZ chief economist Paul Conway said.

“Monthly prices data is a very welcome addition that will help the Monetary Policy Committee make wise decisions that support the wellbeing and prosperity of all New Zealanders.”

The Treasury values the additional, more detailed information the monthly price indexes will bring.

“This is a welcome addition to New Zealand’s price statistics. It will give us a better handle on what is happening in the economy, helping us to advise the Government with greater precision,” the Treasury’s chief economist Dominick Stephens said.

“It’s great to see Stats NZ building an increasingly sophisticated picture of the economy in this way.”