18 Nov 2014

Retail prices still under pressure

7:50 am on 18 November 2014

A stronger-than-expected increase in the volume of retail sales probably has not driven up economic growth in the September quarter, as actual retail prices remain under pressure.

Seasonally adjusted retail sales in the third quarter rose 1.5 percent, compared with a 1.1 percent rise in the June quarter.

However, the value of sales rose just 0.9 percent, which was slightly weaker than the 1.0 percent increase in the June quarter.

ASB rural economist Nathan Penny said the moderate increase in the value of sales was in line with wage growth.

Actual sales volumes rose 4.7 percent in the three months ended September from the same quarter last year, while the value of sales rose 4.1 percent from the year earlier.

Get the RNZ app

for ad-free news and current affairs