WELLINGTON, July 15 (Xinhua) -- Higher petrol prices have pushed New Zealand's inflation for the three months to June to 1.6percent, making the annual inflation rate to 4 percent -- above the Reserve Bank's target band of between 1 percent and 3 percent, Statistics New Zealand reported on Tuesday.
It said in the time when the Consumer Price Index rose 1.6 percent, petrol prices rose 13 percent, and higher food prices also figured prominently.
The average cost of food rose 8.2 percent during the past year -- the steepest rise in 18 years.
Households and companies also had to cope with stronger electricity prices as drought conditions affected power generation.
Despite the annual rate now exceeding the Reserve Bank's target band, most economists expect the bank will start lowering the Official Cash Rate from September on mounting evidence that the economy is in recession.
