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WELLINGTON. – The consumer price index (CPI) fell 0,5 percent in the June 2020 quarter as the Covi-19 pandemic saw cheaper petrol and falling hotel and motel prices, New Zealand’s statistics department Stats NZ said last week.
It was the first fall in quarterly inflation since the December 2015 quarter when there was also a drop of 0,5 percent, Stats NZ said.
“The Covid-19 pandemic has created a lot of volatility and uncertainty,” prices senior manager Aaron Beck said in a statement.
“These have resulted in some large price fluctuations as well as several measurement challenges,” Beck said.
Petrol prices fell 12 percent over the quarter. This is the biggest quarterly fall in petrol prices since the December 2008 quarter, he said.
“Global crude oil prices fell sharply over the first four months of 2020 reaching a low point in April,” Beck said.
“International lockdown restrictions and global economic uncertainty have greatly reduced international demand for crude oil, driving prices down at the pump,” he added.
Domestic accommodation prices fell 14 percent in the June 2020 quarter, mainly due to large price falls in prices for hotel and motel accommodation, Stats NZ said.
In late March, New Zealand’s borders were closed to international visitors because of Covid-19 and the country went into alert level 4 lockdown. Non-essential workers were told to stay home, and there was little domestic travel, it said.
“Domestic accommodation prices tend to fall in the June quarter after rising over summer. However, the fall this June was larger than usual, coinciding with travel restrictions,” Beck said.
These falls coincided with a campaign to entice domestic tourism within New Zealand once non-essential travel resumed in mid-May, Beck said. – Enditem.
Online Reporter