New Zealand households saw price rises averaging 0.3 percent in the quarter to the end of June, the government statistics agency said Tuesday, reinforcing the view that the central bank will continue to keep interest rates on hold.

The rise in the consumers price index (CPI), a main gauge of inflation, was driven mainly by energy and food prices, according to Statistics New Zealand.

"The increase in the CPI reflects higher electricity prices and seasonally higher vegetable prices, partly offset by lower prices for things such as telecommunication services," prices manager Chris Pike said in a statement.

Electricity prices rose 4.5 percent in the quarter, after falling a total of 0.7 percent over the previous three quarters. Electricity prices were now 3.7 percent higher than their previous peak in the June 2011 quarter.

Vegetable prices were up 11 percent, reflecting seasonal rises in tomato and lettuce prices.

Other upward contributors to the CPI were beer (up 2.7 percent), home rentals (up 0.5 percent), new home purchases (up 0.9 percent), international air fares (up 2.4 percent), overseas package holidays (up 2.8 percent) and petrol (up 0.4 percent).

The main lower prices were for telecommunication services (down 2.5 percent), fresh milk (down 4.6 percent), fruit (down 3.2 percent), audio-visual equipment (down 3.6 percent), and second- hand cars (down 1 percent).

The CPI rose 1 percent in the year to the end of June, the smallest annual movement since a 0.5-percent increase for the year ending December 1999.

The New Zealand Council of Trade Unions (CTU) said the low CPI figure provided an opportunity to increase pay packets.

CTU economist Bill Rosenberg said wages, in real terms, were lower than they had been in 2009.

"There is no indication that wages are causing inflation," he said in a statement.

"Non-tradable inflation is being driven by housing and electricity prices -- adding to difficulties for low and middle income households -- and government charges."

An Economic Update from the ASB Bank said pricing intentions and inflation expectations were continuing to ease, and annual inflation was at the bottom of the Reserve Bank of New Zealand's ( RBNZ) target band of 1 percent to 3 percent, making any change in the record low 2.5-percent Official Cash Rate (OCR) unlikely this year.

"We expect annual inflation will track around the mid-point of the RBNZ's target band over the coming year. With uncertainty over the Eurozone debt crisis continuing to dominate the RBNZ's outlook, the contained inflation outlook adds to the case for little urgency for the RBNZ to raise the OCR. We expect the RBNZ will keep the OCR on hold until at least March 2013," it said.