WELLINGTON, Jan. 25 (Xinhua) -- Prices rose 0.1 percent in the December 2017 quarter, and higher petrol prices, air fares, and housing-related costs were countered by lower prices for vegetables, new cars, and a range of household goods, New Zealand's statistics department Stats NZ said on Thursday.

The relatively flat result of the quarter leaves the Consumers Price Index (CPI) inflation rate at 1.6 percent for the December 2017 year. Inflation was 1.9 percent for the September 2017 year, Stats NZ said.

Inflation is a key measure for the Reserve Bank in setting interest rates and is commonly used in adjusting pay rates and other contracts, it said.

Transport rose 3.2 percent in the December 2017 quarter, influenced by higher petrol prices, which was up 6.1 percent, and international air fares, which was up 11 percent, statistics showed.

Housing and household-related prices were a large contributor to inflation in the December 2017 quarter, influenced by higher prices for construction and rent, he said.

Food prices fell 1.7 percent in the December 2017 quarter, influenced by seasonally lower vegetable prices, which were down 19 percent, Attewell said, adding that prices fell for tomatoes, lettuce, and other salad foods.

"Retail prices fell by more than usual in the December 2017 quarter, contributing to lower inflation than widely expected," Attewell said, adding that changing retail pricing strategies have led to lower prices for a range of household items, while specials drove new car prices down 6.2 percent.