The CPI or retail inflation for September rose to 4.41 per cent, from 3.74 per cent in the previous month.
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“Consumer prices in September 2015 were 1.7 percent lower year-on-year, as measured by the consumer price index – CPI, and 1.5 percent lower expressed on the basis of the Harmonised Index of Consumer Prices (HICP)”, said INS.
However, food inflation in the month under review edged up by 0.69 percent from a decline of 1.13 percent recorded in August and 3.68 percent in the corresponding month of past year.
The monthly CPI drop was mostly caused by lower food (especially fruit and vegetable) price inflation, which eased to 2.7% year on year from 3.7%.
The output of capital goods, a barometer of investment, grew at an impressive rate of 21.8 per cent as against a contraction of 10 per cent in the same month past year. Inflation in sugar and confectionery category remained in negative zone at (-) 12.91 percent. The September figure was also below analysts’ forecasts for 0% growth, with the falling cost of food and motor fuel contributing to the surprise fall.
During the month, eggs also turned cheaper with 1.19 per cent price rise.
Clothing and footwear prices rose by 2.8pc between August and September this year compared with a rise of 4.0pc during the same period last year.
New Zealand consumer prices were up 0.3 percent over the September quarter, prompting speculation that the central bank might further cut interest rate later in the year. She said China’s 7 percent target of economic growth is unrealistic and she expects the real economic growth to be 4 to 5 percent.
A raft of key quarterly economic indicators will be released on Monday.
Last week, the Bank of England’s monetary policy committee (MPC) voted to leave interest rates at 0.5 per cent, and delivered a few welcome news for households when it predicted that inflation would remain close to zero for longer, staying below 1 per cent until spring 2016.
Chinese authorities have made a number of moves to prop up the economy.
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Economists now expect inflation to start bouncing back at the end of the year, as the commodity price fall stabilises.
