The fastest rate of inflation in a decade

This is the highest rise in the annual Consumers Price Index (CPI) since June 2011, when inflation reached 5.3%.

The latest figure was higher than was expected by most forecasters, who were predicting a number over four but not by such a big margin.

This annual rise in the CPI was driven by a big 2.2% rise in the quarterly CPI, from July to September, which accelerated the impact of lower rises for the preceding quarters.

Excluding the impact of GST rises, this quarterly rise was the highest since 1987.

Rates payable by home owners helped drive up the quarterly rate – they rose 7.0%. Transport costs rose 4.0% while food costs rose 2.7%. Within the food category, fruit and vegetables rose 11%.

Looked at annually, the cost of petrol was a big factor.

A litre of 91 Octane was $2.27 in the September quarter, up from $1.86 a year earlier.

In the month and a half since the period looked at by Stats NZ, petrol prices have risen still higher.

Stats NZ says Covid 19 did not appear to have much impact on the CPI, although a drop in prices 15 months ago coincided with the impacts of the first lockdown.