Inflation soars to 3.3%

Stats NZ reports:

Annual inflation as measured by the consumers price index (CPI) increased to 3.3 percent in June 2021, Stats NZ said today.

This was the biggest increase in nearly 10 years and was driven by higher prices for new housing and petrol.

So aspiring home owners and vehicle owners most affected.

The cost of building a new house was the biggest contributor to both annual and quarterly inflation this quarter, up 7.4 percent for the year, and 4.6 percent for the quarter.

A 5% quarterly increase is huge. We’re looking at doing an extension on our house and the projected costs from the quantity surveyor were unbelievably high.

Petrol prices increased 16 percent between the June 2020 quarter and June 2021 quarter. The weighted average price of a litre of 91 octane was $2.13 in the June 2021 quarter, up from $2.00 in the March 2021 quarter. 

Even worse now – up at $2.27.

Expect mortgage rates to start to increase now inflation is above the 1% to 3% target band.