Continuing Stable Prices Positive For Exporters
TreasurerThe export sector, positive business and consumer confidence, and strong economic growth in 1999 will be supported by a low inflationary environment, Treasurer Rt Hon Bill Birch said today.
"Economic growth rebounded in September, and indications are we had a strong December quarter, but there were very limited price pressures in the domestic economy.
"Today's inflation figures show inflation at its lowest since 1960, and underlying inflation at its lowest level since it began being measured in 1989.
"Stable prices are good news for exporters and consumers and ensure interest rates remain low."
Mr Birch said it was also encouraging that today's figures showed prices falling as a direct result of government initiatives to increase competition.
"Energy prices have decreased through the government's electricity reforms and greater competition in petrol retailing, and both new and used car prices have decreased through tariff removal and the introduction of parallel importing."