NZ price index moves with the times

MP3 music players and laptop computers will take over from knitting needles and sherry as New Zealand revamps its measure of inflation to reflect changing consumer tastes.

Flat screen televisions would also be in, while hair spray would waft away in the rejig of the consumer price index (CPI), Statistics New Zealand said today.

The main element in the index remains housing and household utilities but its weighting has been reduced to 20 per cent from 21.5 per cent.

The weighting for transport costs has been increased to 17.2 per cent from 15.4 per cent, reflecting an increased contribution from petrol.

Food remains the second biggest group in the index, fractionally increased to 17.4 per cent of the CPI from 17.2 per cent.

The consumer price index rose 1.5 per cent in the three months to June 30, taking the annual rate to 4 per cent.

Third quarter data using the new weightings along with revised previous data will be published on October 25.

The Reserve Bank has a mandate to keep the annual inflation rate within a range of 1-3 per cent on average over the medium term.

- NZPA