Employer Bulletin | 21 October
New Zealand’s consumers price index increased 2.2 percent in the September 2024 quarter, compared with the September 2023 quarter, according to figures released by Stats NZ.
The 2.2 percent annual increase follows a 3.3 percent annual increase in the June 2024 quarter.
“For the first time since March 2021, annual inflation is within the Reserve Bank of New Zealand’s target band of 1 to 3 percent. Prices are still rising, but not as much as previously recorded,” consumer prices manager Nicola Growden said.
Higher rent prices was the biggest contributor to the annual inflation rate, up 4.5 percent – almost a fifth. Of the five broad regions measured, rent prices in the South Island excluding Canterbury had the biggest annual increase and Wellington had the smallest.
Prices for local authority rates and payments increased 12.2 percent in the 12 months to the September 2024 quarter (16 percent contribution to the CPI increase).
“This is the largest rates increase since 1990,” Growden said.
Partly offsetting the annual CPI increase was lower prices for petrol, which fell 8.0 percent, and vegetables, falling 17.9 percent. This decrease follows high prices for potatoes, kūmara, and onions last year.
The consumers price index rose 0.6 percent in the September 2024 quarter, compared with the June 2024 quarter. The increase in local authority rates and payments contributed over half of this. The movement follows a 9.8 percent increase last year.
The 8.4 percent increase in vegetable prices was primarily driven by rising prices for tomatoes (16 percent of the quarterly increase).
While prices rose overall, a 6.5 percent fall in petrol prices across the country was the largest downwards contributor to the 0.6 percent quarterly movement. This included the removal of the Auckland regional fuel tax of 10 cents per litre plus GST on 30 June 2024
In today’s Bulletin:
- A settlement is breached, but did that cause disadvantage?
- Asking employee to resign is unjustified dismissal
- Employees must be consulted on transferring in a business sale
- Employer fails to consult on redundancy
- Eight news updates of interest for employers including: Overseas investment changes to get New Zealand off the bench; Big year of building reforms; Government to provide significant regulatory relief for business; Electronic card transactions: September 2024; Dairy export quota Bill passes first reading; Annual inflation at 2.2 percent; Annual Report: ACC supports 2 million new claims in 50th year; and Stronger fuel reserves to drive economic stability.
- Six bills open for submission
If you have any questions, about this case or other employment relation matters, call the Advice Line team on 0800 800 362.