Inflation stays high - Stats NZ

Inflation has remained at 7.2 % for the 12 months to December.    That is the same level as in the annual rate for the September quarter.

Stats NZ said housing and household utilities were the largest contributor to the increase. This was due to rising prices for both constructing and renting houses.

It said costs for building a new house increased 14% in the 12 months to December 2022, following a 17% increase in the year to September.

After housing and household utilities, Stats NZ said the next largest contributor to the annual increase were food prices.

Transport was the next largest contributor, driven by rising prices for both international and domestic air fares.

Stats NZ said quarterly inflation was 1.4 %, and had similar drivers as the annual rate. 

It said non-tradeable inflation - or domestic price rise rises -  were 6.6 percent in the year. Tradeable inflation was 8.2 percent, driven by higher prices for international airfares.

The news came as the lending industry nervously awaits further increases to the base interest rate from the Reserve Bank, which would put upward pressure on retail interest rates and affect already stressed mortgage advisers.

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