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Sector information summarises trends and developments in the building and housing sector. 

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Previous versions of  the building and housing sector trends reports are available on request.

Housing inflation

Updated: 10 August 2011

Energy costs contribute to housing inflation

The consumer price index (CPI) rose 5.3% in the year to June 2011, up from 4.5% in the year ended March 2011. Much of the annual rise is due to the increase in GST from 12.5% to 15% in October 2010.

Annual inflation for home ownership rose to 3.4% in the year ended June 2011, up from 2.9% in the year ended March 2011.

Annual inflation for housing rent remains largely unchanged at 1.8% in the year ended June 2011, compared with 1.7% in the year ended March 2011. 

Annual inflation of the 'Housing and household utilities group' rose to 4.4% in the year ended June 2011, up from 4.0% in the year ended March 2011. The rise was driven by an increase in household energy (annual inflation 7.5%) and home ownership costs.

 Figure 4: Annual Consumers Price Index inflation (to June 2011). Source: Statistics New Zealand