April 19, 2014 4:00pm by David Farrar

Prices stable

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays.

Cigarette and tobacco prices rose 10.2 percent, following an 11.3 percent rise in excise duty in January. “The CPI without cigarettes and tobacco showed no change in the March quarter,” prices manager Chris Pike said.

That means no cost of living increase, if you are not a smoker.

Also of interest is that despite the scare stories about power price increases of 24%, the quarterly increase in the cost of electricity for households is only 0.07%. Remember that figure.

Also food prices are down 0.3% in March, and are only 1.2% higher than a year ago.