sydneynew zealand consumer price inflation cooled in the second quarter as fuel costs continued to ease but the pace of price gains across the economy is still enough to keep the reserve bank of new zealand vigilant for some time yet the consumer price index increased 60 onyear with the quarterly rate coming in at 11 slightly above the rate forecast by economists of 10 according to stats nz the data compare with a 67 onyear increase in the first quarter and come amid signs that inflation pressures are ebbing away quickly in places likely the us and canada the data also support the rbnzs recent decision to put interest rates on hold for now with the economy in a technical recession still there are concerning areas of prices growth that will keep the central bank on alert food was the largest contributor to annual inflation the increase was because of rising prices for vegetables readytoeat food and milk cheese and eggs stats nz said on wednesday vegetable prices increased 233 over the year while readytoeat food and milk cheese and eggs increased by 98 and 138 respectively the next largest contributor to the annual increase was housing and household utilities the increase was because of rising prices for both construction and rents stats nz added prices for building a new house increased 78 from a year earlier in the second quarter following an 115 jump in the second quarter rents increased 42 onyear in the second quarter following an increase of 43 in the second quarter slightly offsetting the increases was a decrease in transport costs prices for gasoline decreased 150 over the year following an 83 onyear fall in the second quarter