Inflation rate slips to 3pc, but food prices up
11:41AM Friday Apr 17, 2009

New Zealand's annual inflation rate slipped to 3 per cent in the March quarter, but food prices still packed a nasty punch.

The annual rate has fallen from an 18-year high of 5.1 per cent as recently as the September quarter, and from a 3.4 per cent annual rate in December.

For just the three months to March, the Consumers Price Index rose 0.3 per cent, following a decrease of 0.5 per cent in the December quarter, Statistics New Zealand (SNZ) said today.

The data was in line with economists' expectations.

A food price rise of 1.2 per cent was a key factor in the increase for the March quarter, as was a 1.8 per cent rise in the alcoholic beverages and tobacco group.

More here.