The consumers price index (CPI) rose 0.5 percent in the March 2018 quarter, Stats NZ said today. The annual inflation rate was 1.1 percent, down from 1.6 percent in the year ended December 2017.

Government-influenced price changes affected the annual figure, with higher cigarette and tobacco prices being countered by cheaper tertiary education.

The annual tobacco tax increase on 1 January 2018 lifted quarterly inflation, with prices up 10 percent.

"The average price for packet of 25 cigarettes was $35.14 in March, compared with $31.68 last December," prices senior manager Paul Pascoe said.

Higher prices for accommodation services and petrol also contributed to the quarterly CPI rise, but they were slightly offset by seasonal falls for international airfares.