Government to spend $16.5m changing way inflation data reported
Statistics Minister Shane Reti.
Photo:
RNZ / Marika Khabazi
A move to monthly reporting on inflation data should help the Reserve Bank respond to changes in the economy more efficiently.
Statistics Minister Shane Reti has announced the Government will spend $16.5 million on delivering a monthly consumers price index (CPI) from 2027.
It is currently released quarterly and there have been concerned that the data provided is too infrequent.
"Inflation affects interest rates, benefit adjustments, and household budgets. Timely data helps ensure Kiwis are better supported in a fast-changing environment," Reti said.
He said funding was also being allocated to align Stats NZ's reporting with updated international macroeconomic standards.
"Modern, internationally aligned statistics will support trade and investment, helping drive economic growth and job creation."
Reti said the changes reflected a broader reset for Stats NZ.
"Some outputs have not met the standard expected of a world-class statistics agency. We're getting back to basics - measuring what matters. Our goal is a modern, efficient, and reliable data system that delivers the insights New Zealand needs now and into the future."
Infometrics chief executive Brad Olsen said the move to a monthly comprehensive CPI would upgrade the country's ability to understand and react to inflation.
"We'll also have to be a bit more discerning - the more frequent the data, the more noise there can be, and it can become more difficult to separate the noise from actual signals in the data. Is an uptick in prices in a month a signal of changing pricing pressures? Or is it just that a certain product wasn't on special as much that month, or something else like that?
"It's encouraging to see more investment into New Zealand's critical statistics - better data leads to better decision making, and the investment in both a monthly inflation measure and the shift to an admin-driven Census from 2030 are significant shifts in New Zealand's statistical data approach, but also reflects the changing times we live in. There are more changes happening, more often, and so rapid timely data is increasingly needed. Having annual data for Census-related measures will enhance the ability for decision makers to understand changes and trends in local communities faster than before, and that's much needed these days.
"I'm looking forward to engaging with Stats NZ as they get things going on both projects, as those using the data have got to trust and understand the changes being made. Engagement so far has been great, and Stats NZ has been forthright in discussing the challenges around data collection and timeliness of critical data, and so this work and investment is a positive step to achieving better outcomes."
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