The amount of lollies handed out to sweet-toothed grandchildren by the nation's grandmothers, particularly from Pascal Party Mix bags and traditional favourites MacIntoshes Toffees, rose 8.4% from the previous quarter, official data shows.

The frivilousness of the traditional Saturday morning doling out of sweets, sparking cavity growth and increased domestic demand, has been a factor in the Reserve Bank of New Zealand's (RBNZ) hawkish stance on interest rates.

'Prior to the release, I had thought that we would've seen static demand - say two toffees, a chocolate afghan or some shortbread and three marshmallow eskimos per weekly visit to grandma, causing the RBNZ to relax its cautionary stance,' said Goldman Sachs JBWere economist Josef Harpstein. "But the increased popularity of Halloween this year has seen that average rise sharply and the Reserve Bank is likely to chastise the nation's grandmothers for their over-expenditure.'

Inflation in the year through September was 3.4%, the highest in nearly five years and above the RBNZ's target range of 1% to 3%.

Forecasters are divided on whether further rate rises are likely next month.

'Obviously, we're entering Christmas and the amount of home baking and handing out of lollies goes through the roof,' said Harpstein. 'The increased quantities of chocolate santas and pavlovas in the market of childrens' sweetables will play havoc with these already buoyant figures. It really is a silly time of year, but we're hoping the supply curve will flatten out once demand is no longer high - especially when there's a flood of the normally uneaten Harrogate, Malt and Egg & Cream toffees into the market.'