NZ posts lowest inflation in five years

October 15, 2009 05:32:24 PM

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New Zealand's annual inflation rate dropped to 1.7 percent in the September quarter, its lowest level in more than five years, official figures showed Thursday.

A year ago the annual inflation rate stood at an 18-year high of 5.1 percent.

"A big contributor to the lower annual increase came from petrol prices and airfares falling during the year, which partly offset higher prices for food, electricity, and local authority rates," Statistics New Zealand prices manager Chris Pike said.

"This annual increase is the lowest in five-and-a-half years."

Overall, transport prices fell 5.5 percent during the year with petrol down 19.0 percent, international air transport down 15.1 percent, and diesel down 38.8 percent.

Inflation for the September quarter stood at 1.3 percent, driven by higher food prices and rising international airfares, Pike said.

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