Forty-four percent of our consumer price components relate to 'tradable' goods and services; we list what they are

20th May 14, 11:28am by David Chaston

This is a story for the data geeks.

When we talk about inflation, we throw around the distinction between 'tradable' and 'non-tradable' inflation.

And most of us know what that means.

Tradables are those goods and services that can be substituted with imported or internationally available alternatives.

Non-tradables are those goods and services that can't. They are the majority at 56%.

The distinction is important for public policy because we as a nation are dependent on open trade and the impact of the exchange rate on our costs is important.

But it is sometimes helpful to see exactly what makes up these two categories.

The RBNZ first established the distinction, and then that work was taken over by Statistics NZ.

The last time a major review was undertaken was in 2004.

That work has been updated subsequently, and the latest series uses data from June 2011.

This story is intended as a easy-find resource for readers.

Here is the list they currently use (actually, it's still a summary of the actual specific products and services surveyed).

Consumers price index tradable and non-tradable component series
Expenditure weights

			*June 2011 quarter base expenditure weight*
Group, subgroup, or class			Tradables	Non-tradables	All groups
			Percent of total expenditure (weight)

Food group			12.75	6.04	18.79

	Fruit and vegetables		2.48	…	2.48
		Fruit	1.01	…	1.01
		Vegetables	1.46	…	1.46
	Meat, poultry, and fish		2.23	0.81	3.03
		Meat and poultry	1.76	0.81	2.57
		Fish and other seafood	0.46	…	0.46
	Grocery food		6.15	1.06	7.20
		Bread and cereals	1.22	0.87	2.10
		Milk, cheese and eggs	1.73	0.18	1.91
		Oils and fats	0.35	…	0.35
		Food additives and condiments	0.54	…	0.54
		Confectionery, nuts, and snacks	1.68	…	1.68
		Other grocery food	0.62	…	0.62
	Non-alcoholic beverages		1.90	0.21	2.12
		Coffee, tea, and other hot drinks	0.38	…	0.38
		Soft drinks, waters, and juices	1.53	0.21	1.74
	Restaurant meals and ready-to-eat food		…	3.96	3.96
		Restaurant meals	…	1.45	1.45
		Ready-to-eat food	…	2.51	2.51

Alcoholic beverages and tobacco group			2.09	4.82	6.91

	Alcoholic beverages		2.09	2.70	4.79
		Beer	…	1.98	1.98
		Wine	1.15	0.33	1.48
		Spirits and liqueurs	0.94	0.38	1.32
	Cigarettes and tobacco		…	2.13	2.13

Clothing and footwear group			4.34	0.08	4.42

	Clothing		3.50	0.08	3.58
		Men's clothing	0.84	…	0.84
		Women's clothing	1.91	…	1.91
		Children's and infants' clothing	0.52	…	0.52
		Clothing accessories	0.15	…	0.15
		Knitting and sewing supplies	0.08	…	0.08
		Clothing services	…	0.08	0.08
	Footwear		0.84	…	0.84
		Men's footwear	0.18	…	0.18
		Women's footwear	0.54	…	0.54
		Children's and infants' footwear	0.12	…	0.12

Housing and household utilities group			0.72	22.83	23.55

	Actual rentals for housing		…	8.78	8.78
	Home ownership		…	4.01	4.01
		Purchase of new housing	…	4.01	4.01
	Property maintenance		0.61	2.96	3.57
		Property maintenance materials	0.61	…	0.61
		Property maintenance services	…	2.96	2.96
	Property rates and related services		…	2.74	2.74
		Water supply	…	0.26	0.26
		Refuse disposal and recycling	…	0.14	0.14
		Local authority rates and payments	…	2.32	2.32
		Other property related services	…	0.03	0.03
	Household energy		0.11	4.34	4.45
		Electricity	…	3.91	3.91
		Gas	…	0.43	0.43
		Solid fuels	0.11	…	0.11

Household contents and services group			4.14	0.30	4.44

	Furniture, furnishings, and floor coverings		1.37	…	1.37
		Furniture and furnishings	1.01	…	1.01
		Carpets and other floor coverings	0.36	…	0.36
	Household textiles		0.42	…	0.42
	Household appliances		0.80	0.07	0.88
		Major household appliances	0.69	…	0.69
		Small electrical household appliances	0.12	…	0.12
		Repair and hire of household appliances	…	0.07	0.07
	Glassware, tableware, and household utensils		0.33	…	0.33
	Tools and equipment for house and garden		0.56	0.04	0.60
		Major tools, equipment for the house & garden	0.27	0.04	0.31
		Small tools, accessories for the house & garden	0.29	…	0.29
	Other household supplies and services		0.66	0.18	0.84
		Cleaning products & other household supplies	0.66	…	0.66
		Other household services	…	0.18	0.18

Health group			0.88	4.56	5.44

	Medical products, appliances, and equipment		0.88	0.11	1.00
		Pharmaceutical products	0.51	0.11	0.62
		Other medical products	0.04	…	0.04
		Therapeutic appliances and equipment	0.33	…	0.33
	Out-patient services		…	3.59	3.59
		Medical services	…	2.32	2.32
		Dental services	…	0.95	0.95
		Paramedical services	…	0.33	0.33
	Hospital services		…	0.85	0.85

Transport group			11.15	3.97	15.12

	Purchase of vehicles		3.24	…	3.24
		Purchase of new motor cars	1.00	…	1.00
		Purchase of second-hand motor cars	2.04	…	2.04
		Purchase of motorcycles	0.14	…	0.14
		Purchase of bicycles	0.06	…	0.06
	Private transport supplies and services		6.31	2.64	8.96
		Vehicle parts and accessories	0.58	…	0.58
		Petrol	5.27	…	5.27
		Other vehicle fuels and lubricants	0.46	…	0.46
		Vehicle servicing and repairs	…	1.33	1.33
		Other private transport services	…	1.32	1.32
	Passenger transport services		1.59	1.32	2.92
		Rail passenger transport	…	0.09	0.09
		Road passenger transport	…	0.42	0.42
		Domestic air transport	…	0.72	0.72
		International air transport	1.59	…	1.59
		Sea passenger transport	…	0.10	0.10

Communication group			0.20	3.33	3.53

	Postal services		…	0.17	0.17
	Telecommunication equipment		0.20	…	0.20
	Telecommunication services		…	3.16	3.16

Recreation and culture group			5.71	3.41	9.12

	Audio-visual and computing equipment		1.51	…	1.51
		Audio-visual equipment	0.81	…	0.81
		Computing equipment	0.45	…	0.45
		Recording media	0.25	…	0.25
	Major recreational and cultural equipment		0.30	…	0.30
	Other recreational equipment and supplies		2.07	…	2.07
		Games, toys, and hobbies	0.50	…	0.50
		Equipment for sport, camping, & outdoor rec	0.38	…	0.38
		Plants, flowers, and gardening supplies	0.56	…	0.56
		Pet-related products	0.63	…	0.63
	Recreational and cultural services		…	2.54	2.54
		Recreational and sporting services	…	0.93	0.93
		Cultural services	…	1.42	1.42
		Veterinary services	…	0.19	0.19
	Newspapers, books, and stationery		0.87	0.35	1.22
		Books	0.39	…	0.39
		Newspapers and magazines	0.21	0.35	0.56
		Stationery and drawing materials	0.27	…	0.27
	Accommodation services		…	0.49	0.49
	Package holidays		0.96	0.04	1.00

Education group			…	1.84	1.84

	Early childhood education		…	0.37	0.37
	Primary and secondary education		…	0.66	0.66
	Tertiary and other post-school education		…	0.77	0.77
	Other education		…	0.03	0.03

Miscellaneous goods and services group			2.04	4.81	6.85

	Personal care		1.59	0.78	2.37
		Hairdressing and personal grooming services	…	0.78	0.78
		Electrical appliances for personal care	0.04	…	0.04
		Other appliances and products for personal use	1.55	…	1.55
	Personal effects		0.45	0.04	0.48
		Jewellery and watches	0.28	0.04	0.31
		Other personal effects	0.17	…	0.17
	Insurance		…	1.97	1.97
		Life insurance	…	0.92	0.92
		Dwelling insurance	…	0.19	0.19
		Contents insurance	…	0.21	0.21
		Health insurance	…	0.27	0.27
		Vehicle insurance	…	0.38	0.38
	Credit services		…	0.49	0.49
	Other miscellaneous services		…	1.53	1.53
		Vocational services	…	0.28	0.28
		Professional services	…	0.18	0.18
		Real estate services	…	0.73	0.73
		Other misc services not elsewhere classified	…	0.35	0.35

All groups			44.01	55.99	100.00

1.	Figures may not add to totals due to rounding.

Symbol:
...	not applicable

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

6 Comments

by Boatman | 20th May 14, 3:10pm 1400555418

Well done for doing this

by Roger Witherspoon | 20th May 14, 6:46pm 1400568365

Excellent. Any chance you can follow it up with what inflation has actually been in each category over the last say, 1,3,5 and 10 years?

I assume most of it is in the non-tradeable protected sectors such as rates, electricity and tertiary education, (also GST and tobacco tax), but it would be good to see real figures. The Anz do some graphs on page 7 here:

http://www.anz.co.nz/resources/1/e/1eef2326-fe7e-4f95-abaa-185045df7eea…

It seems to me there is a big hole in our public affairs here. The productive sectors are all punished for the profigacy of the protected sectors. Am I just biased, or is that the case? It would be good to know.

by steven | 20th May 14, 7:19pm 1400570340

The point is not per category but the impact overall on the wallet over the year and over many ppls wallets.

For instance I just changed my broadband plan to $139 unlimited downloads from $200 with 150gb. So Im saving $850~900 a year. That more than offsets any increases I have seen for 1 maybe 2 years I suspect.

I changed my phone plan from $40 a month to $29 for a better one, a 25%+ saving.

regards

by David Chaston | 20th May 14, 7:43pm 1400571835

Can I suggest you use Infoshare on the StatsNZ website.

It is a huge, useful resource.

You can find the answers to all those queries there. Just go to

Economic Indicators / Consumer Price Index /

and choose Level 3 or Level 4.

Extract them via Excel and you can look at the data any way you like.

It's not hard. Ends the guessing.

by dh | 20th May 14, 8:08pm 1400573287

someone (possibly Kumbel? apologies if I have misattributed) made the very reasonable point that a lot of the rates cost is passing through construction and electricity costs, so if you are looking for inflationary sources you should probably work back to the primary cause.

by Kumbel | 20th May 14, 10:52pm 1400583136

I think it was me. I hope that the good folks at Statistics NZ take into account the composite nature of rates. In this case i am not sure it is a showstopper. Council inputs are largely non-tradeable anyway.

Forty-four percent of our consumer price components relate to 'tradable' goods and services; we list what they are

6 Comments

In this section

Follow the news from interest

Offers for readers