Tyre maker and distributor Bridgestone New Zealand has announced its second round of price increases this year.
Bridgestone said it would increase truck and passenger car tyres from its Bridgestone and Firestone ranges by between 5 to 19% from July 1.
Passenger tyre prices would rise as much as 9%, while associate brand passenger tyres would increase up to 16%.
Light truck, truck, bus, tubes and retread prices would all be increased by up to 5%, Bridgestone said.
Bridgestone's NZ Business Director Ken Oyama said this was the second increase this year because of high raw material prices.
"We are taking pricing actions in stages, and future steps will become necessary should the current trend continue," Oyama said.
Natural rubber prices had increased at unprecedented rates, while petrochemical-based materials such as synthetic rubber and carbon black remained at high levels, he said.
"Bridgestone makes every effort to absorb cost fluctuations through efficiencies; however, the widespread rise in the cost of raw materials makes these price adjustments necessary."
The Reserve Bank has commented it expected underlying inflation to remain under control for the foreseeable future and is not expected to increase the Official Cash Rate from a record low 2.5% until next year.
Meanwhile, the US Federal Reserve has kept its main interest rate at nearly 0% for almost three years and has been printing money since early 2009, driving up commodity prices and exporting inflation to emerging economies.
The US Federal Reserve also believes core inflation is under control and that any increase from commodity and food prices is 'transitory'.
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