Buoyant building pushes up prices

Capital goods prices rose 1.3 per cent in the June quarter, with the most significant contribution coming from the residential building sector, Statistics New Zealand said yesterday.

The rise was the largest since a 1.5 per cent increase in the June 2004 quarter.

Five of the six asset groups in the capital goods price index rose in the latest quarter. The residential buildings index was up 1.3 per cent.

The high cost of construction components, increased prices for fittings and higher subcontractors' charges were the main factors behind the rise.

For the year to June, the residential buildings index was up 4.9 per cent.