The consumer price index (CPI) fell 0.2 per cent in the December 2014 quarter, following three consecutive rises of 0.3 per cent, according to Statistics New Zealand.

The CPI measures the rate of price change of goods and services purchased by New Zealand households, and often falls in December quarters.

“Lower prices for petrol and vegetables were partly countered by higher prices for international travel and housing-related costs,” prices manager, Chris Pike, said.

Excluding petrol, the CPI showed a 0.1 percent rise this quarter.

Petrol prices made the largest downward contribution, falling by down 5.7 per cent.

Seasonally lower prices for tomatoes, lettuce, and cucumber influenced a 14 per cent decline in vegetable prices – a smaller than usual December quarter fall, following a mild winter. Vegetable prices are now slightly higher than a year ago.

International travel prices were higher, with international air fares up 7.3 per cent and package holidays up 5.3 per cent. These prices usually rise in the December quarter. Domestic air fares also rose, influenced by high demand leading up to the holiday period.

Annual increase in prices slows

The CPI increased 0.8 per cent in the year to the December 2014 quarter. This is the smallest annual rise since the June 2013 quarter.

Cigarette and tobacco prices increased 11.9 per cent, influenced by an increase in excise duty in January 2014.

Petrol, down four per cent, was the main downward contributor. Prices for audio visual and computing equipment fell 14 per cent, after adjusting for quality improvements.