Financial Wire

New Zealand Fuel Prices Surge in March

-- Petrol and diesel prices in New Zealand increased by nearly 19% and 43%, respectively, in March compared with the previous month, according to a Stats NZ selected price indexes report on Friday.

The rises in petrol and diesel prices in March were the largest since Stats NZ began publishing monthly vehicle fuel price data in July 2011, following declines in both fuels in January and February.

Food prices fell 0.6% in March compared with the previous month, driven mainly by a 2.9% drop in fruit and vegetables and a 0.8% decline in grocery food, with kiwifruit, chocolate blocks, cheddar cheese, and beef mince contributing most to the decrease.

Domestic airfares decreased by around 14% in March, while international airfares increased by 3.5% compared with February.

"Travelers typically book and pay for airfares in advance, so price changes reflect fares that were set up to 12 months ago," said prices and deflators spokesperson Nicola Growden.

Food prices increased by 3.4% on an annual basis in March, compared with a 4.5% increase in the 12 months to February, mainly due to a 7.3% rise in meat, poultry, and fish prices and a 2.8% increase in restaurant and ready-to-eat meals.

Petrol and diesel prices both increased over the 12 months to March, rising by nearly 14% and 37%, respectively.

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