Statistics NZ is responding to high-powered requests for more timely economic data by expanding its range of monthly pricing information.
At the moment Stats NZ issues monthly information on food and rental prices, but produces the Consumers Price Index - NZ's accepted measure of inflation - only quarterly.
With inflation having been - literally - such a hot issue in recent times, the lack of more timely information has been seen as a big disadvantage for this country in terms of trying to get prices under control. The International Monetary Fund has even commented on it.
In its annual report on the New Zealand economy this year the IMF made pointed remarks about the lack of monthly pricing information in New Zealand when compared with other countries.
“The lack of a monthly CPI series makes New Zealand an outlier among advanced economies and is holding back a timelier formulation and assessment of monetary policy,” the IMF said.
Well, responding to all this, Stats NZ says that additional monthly pricing data will start to be made available from November 14.
And the announcement's being welcomed by two very much more than just interested parties in Treasury and the Reserve Bank.
New price index data to be published monthly are:
- alcoholic beverages and tobacco
- petrol and diesel
- domestic and international airfares
- accommodation services.
The new data will be combined with the existing food and rent data in a new release to be called Selected price indexes (SPI).
"The new data will allow for timely analysis into more price changes that New Zealand households experience and allows for more accurate forecasting of the consumers price index (CPI)," Stat NZ says.
"New Zealand, like the rest of the world, is currently experiencing high inflation. Decision-makers have asked for more frequent information about price changes to understand the impact on New Zealand households,” Stats NZ's general manager of economic and environment insights Jason Attewell said.
He said the food and rent price changes make up about 30% New Zealand household spending.
"We have added new series on petrol, travel, and alcohol that will mean we publish price changes each month for around 44% of New Zealand household spending," he said.
The quarterly CPI will continue to be the official measure of household inflation.
RBNZ chief economist Paul Conway said getting reliable price data faster "is critical to our job of controlling inflation and getting it back in our [1% to 3%] target band".
"Monthly prices data is a very welcome addition that will help the [RBNZ] Monetary Policy Committee make wise decisions that support the wellbeing and prosperity of all New Zealanders.”
Treasury's chief economist Dominick Stephens said the expanded data "will give us a better handle on what is happening in the economy, helping us to advise the government with greater precision".
Stats NZ says that from November 14 the new selected price indexes (SPI) release will provide:
- all the data currently published in the food price index
- all the data currently published in rental price indexes
- new monthly data for the alcoholic beverages and tobacco group, backdated to June 2011
- new monthly data for petrol and diesel (without fuel discounts) backdated to June 2011
- new monthly data for domestic and international airfares backdated to June 2015
- new monthly data for accommodation services backdated to June 2017.
Stats NZ said the SPI "can be factored into monetary policy decisions and potentially be used to forecast official CPI inflation".
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