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New Zealand Inflation Threatens to Break Higher as Energy Costs Rise
New Zealand Finance Minister Nicola Willis cautioned on Monday that inflation could climb “much higher” this year and remain outside the central bank’s 1%–3% target if Middle East tensions persist. Treasury modelling suggests a sharper peak under a scenario of prolonged conflict and deeper supply chain disruption. Inflation already stood at 3.1% in Q4, above the ceiling, with rising energy costs fueling market bets on near-term policy tightening. Willis declined to give precise forecasts, noting Treasury has yet to finalize its central scenario.
Published on 2026-03-30

New Zealand Inflation Rebounds to Q2 2024 High
Annual inflation rate in New Zealand increased to 3.1% in the December 2025 quarter, the highest since the June 2024 quarter, from 3.0% in the previous period and slightly above forecasts. The largest contributors were all in the housing and household utilities group, namely electricity (12.2%, the highest since the March 1989 quarter), local authority rates and payments (8.8%) and rent (1.9%). Compared to the previous quarter, the CPI increased 0.6%, following a 1.0% rise in the previous period. International air transport, up 7.2%, was the largest upwards contributor to the quarterly rise, while petrol, up 2.5%, also added to the increase. Lower vegetable prices, down 16.5%, helped offset the quarterly rise, driven by seasonal falls for tomatoes, cucumbers, capsicums, lettuce, and broccoli.
Published on 2026-01-22

New Zealand Inflation Rate Rises to 3% in Q3
Annual inflation rate in New Zealand increased to 3% in the third quarter of 2025, the highest since the second quarter of 2024, from 2.7% in the previous period and in line with forecasts. The largest contributors were all in the housing and household utilities group, namely electricity (11.3%, the highest since the March 1989 quarter), rent (2.6%), and local authority rates and payments (8.8%). Compared to the previous quarter, the CPI increased 1%, the most in two years, following a 0.5% rise in the previous period. Local authority rates and payments, up 8.8%, was the largest upwards contributor to the quarterly rise. Vegetables, up 12.2%, also contributed, mostly seasonal rises for tomatoes, cabbage, capsicums, lettuce, and broccoli.
Published on 2025-10-19

New Zealand Inflation Rate Misses Expectations in Q2
New Zealand’s annual inflation rate edged up to 2.7% in the second quarter of 2025, from 2.5% in the previous quarter, but remained just below market expectations of 2.8%. Key drivers of the annual increase included local authority rates and payments, which rose 3.2% and contributed 12.9% to the overall rise. Rents and electricity prices also climbed by 3.2% and 8.4%, contributing 12.5% and 8.4%, respectively. These gains were partially offset by significant declines in petrol and early childhood education costs. Petrol prices dropped 8%, subtracting 12.8% from the index, while early childhood education fell 22.8%, contributing -4.7%. The latter reflects the impact of the FamilyBoost childcare payment introduced on July 1, 2024. On a quarterly basis, the Consumer Price Index rose 0.5% in the June quarter, slowing from a 0.9% increase in Q1 and missing forecasts of a 0.6% rise.
Published on 2025-07-20

New Zealand Inflation Rate Exceeds Expectations in Q1
The annual inflation rate in New Zealand accelerated to 2.5% in the first quarter of 2025, from 2.2% in the previous quarter. This pointed to the highest inflation rate since June 2024, exceeding market expectations of 2.3%.Rent was the largest contributor to the annual increase, rising 3.7% and accounting for 14% of the overall figure—despite recording its smallest annual increase since 2021. Local authority rates and payments also rose sharply, up 12.2% over the year, contributing another 14% to the inflation rate. Construction costs increased by 1.9%, adding 7% to the total. Falling petrol prices helped to offset some inflationary pressure, declining 2.8% over the year after a 9.2% drop in the December 2024 quarter. On a quarterly basis, consumer prices rose 0.9%, up from a 0.5% rise in the previous period.
Published on 2025-04-16

New Zealand Inflation Holds at 2021 Low
The annual inflation rate in New Zealand eased to 2.2% in the December quarter of 2024, matching the rate from the prior quarter. This marks the lowest inflation rate since March 2021, although it exceeded market expectations of 2.1%. Costs continued to rise at a slower pace for communication (2.8% vs 3.8% in Q3); clothing (-0.8% vs 0.9%); miscellaneous goods and services (5.7% vs 6.2%); and alcoholic beverages and tobacco (5.1% vs 6.3%). Meanwhile, prices fell for transport (-3.6% vs -5.3%) and education (-4.0% vs. -4.0%). On the other hand, costs rose at a faster pace for food (1.3% vs 0.7%); recreation and culture (3.3% vs 2.3%); and housing and household utilities (4.3% vs 4.6%). On a quarterly basis, prices rose by 0.5% in the three months to December, following a 0.6% increase in the previous period.
Published on 2025-01-21

New Zealand Inflation Slows to 2021’s Low
The annual inflation rate in New Zealand eased further to 2.2% in the September quarter of 2024, from 3.3% in the prior quarter. It marked the lowest reading since March 2021, while came in line with market expectation. Cost continued to rise at a slower pace for recreation and culture (+2.3% vs +2.4% in Q2); communication (+3.8 vs +5.2% in Q2); clothing (+0.9 vs +1.4% in Q2); miscellaneous goods and services (+6.2% vs +7% in Q2) and alcoholic beverages and tobacco (+6.3% vs +6.9% in Q2). Meanwhile, prices fell for transport (-5.3% vs +3.5% in Q2) and education (-4% vs 5.2% in Q2). On the other hand, cost rose at a faster pace for food (+0.7% vs +0.2% in Q2); housing and household utilities (+0.1% vs -1.2% in Q2). On a quarterly basis, prices rose by 0.6% in the three months to September, following a 0.4% increase in the previous period.
Published on 2024-10-15

New Zealand Inflation at 3-Year Low in Q2
The annual inflation rate in New Zealand slowed to 3.3% in the second quarter of 2024, from 4% in the March quarter. It came slightly below market expectation of 3.5%, marking the lowest reading since the June quarter of 2021 led by increases in cost of housing and household utilities (4.4% vs 4.5% in Q1) due to rising prices for rent, construction of new houses, and rates. The next contributor to the rise was miscellaneous goods and services (7% vs 6.6% in Q1), followed by Alcoholic beverages and tobacco (6.9% vs 7.4% in Q1). Conversely, prices fell for Household contents and services (-1.5% vs 3% in Q1). On a quarterly basis, prices rose by 0.4% in the three months to June, following a 0.6% increase in the previous period.
Published on 2024-07-16

New Zealand Inflation Eases to Nearly 3-Year Low in Q1
The annual inflation rate in New Zealand eased to 4% in the March quarter of 2024, from 4.7% in the fourth quarter. It pointed to the lowest figure since the second quarter of 2021. The largest contributor was Housing and household utilities increased 4.5 percent as prices went up for rent (up 4.7 percent), construction (up 3.3 percent) and property rates and related services (up 9.6 percent). Recreation and culture increased 5.6 percent, driven by rise in cost of accommodation services (up 10.6 percent); recreational and cultural services (up 7.4 percent); other recreational equipment and supplies (up 3.6 percent). Alcoholic beverages and tobacco increased 7.4 percent, due to higher cost of cigarettes and tobacco (up 10.4 percent) and alcoholic beverages (up 5.0 percent).
Published on 2024-04-16

New Zealand Inflation Slows Further in Q4
The annual inflation rate in New Zealand eased to 4.7% in the three months to December of 2023, from 5.6% in the third quarter. It marked the lowest reading since the second quarter of 2021. The largest contributor was housing and household utilities rising 4.8% (vs 5.3% in Q3), as prices went up for rent (4.5% vs 4.4% in Q3), construction (3.6% vs 5% in Q3) and local authority rates and payments (9.6% vs 9.6% in Q3). Food cost increased 5.7% (vs 8.8% in Q3), influenced by: grocery food (6.7% vs 11% in Q3), restaurant meals and ready-to-eat food (7.4 % vs 8.9% in Q3) and non-alcoholic beverages (5.8% vs 8.9% in Q3). Alcoholic beverages and tobacco prices also rose by 8.1% (vs 7.4% in Q3), driven by: cigarettes and tobacco (11.5% vs 9% in Q3), alcoholic beverages (5.6% vs 6.3% in Q3). On a quarterly basis, the consumer price index rose 0.5% in the fourth quarter, slowing from a 1.8% rise in the preceding quarter.
Published on 2024-01-23

New Zealand Inflation Eases to 5.6% in Q3
The annual inflation rate in New Zealand eased to 5.6% in the September quarter of 2023, from 6% in the second quarter. It was the lowest figure since the third quarter of 2021. The first largest contributor to the rise was food ( 8.8% from 12.8% in Q2), led by increases in prices of fruit and vegetables (4.4% vs 21.1%), Grocery food (11% vs 13.2%) and restaurant meals and ready-to-eat food (8.9% vs 9). The next largest contributor was housing and household utilities, due to rising prices for construction (5% vs 7.8%) and rents (4.4% vs 4.2%). Transport was the third major contributor (4.6% vs -0.7%), driven by rising prices for petrol and domestic air transport. On a quarterly basis, the consumer price index went up 1.8% in the third quarter, accelerating from a 1.1% increase in the preceding quarter.
Published on 2023-10-16

New Zealand Inflation Slows to 6% in Q2
The annual inflation rate in New Zealand slowed to 6% in the second quarter of 2023, the lowest since the fourth quarter of 2021 and compared to 6.7% in the previous period. Still, the prices remained at the levels not seen since the 1990s. Food was still the largest contributor to inflation due to rising prices for vegetables, ready-to-eat food, and milk, cheese, and eggs. The next largest contributor was housing and household utilities amid rising prices for both construction and rents. Recreation and culture prices were also up driven by higher costs for pets and pet-related products. On a quarterly basis, the consumer price index rose 1.1% in the second quarter, slowing from a 1.2% gain in the preceding quarter.
Published on 2023-07-18

New Zealand Inflation Eases to 6.7% in Q1
The annual inflation rate in New Zealand rose 6.7 percent in the first quarter of 2023 down from a 7.20 percent increase in the fourth quarter of 2022. It was the smallest gain in consumer prices since the fourth quarter of 2021 as prices rose at a slower pace for transport (3.7% vs 7.4% in Q4), housing and household utilities (7.1% vs 8%), household contents (6.8% vs 8.2%), and health (5.2% vs 5.6%). In contrast, costs grew faster for food (11.3% vs 10.7%), alcoholic beverages and tobacco (7.4% vs 5.9%), and clothing (2.5% vs 2%). Meantime, the cost of communication fell (-0.3% vs +3.1%). Quarter on quarter, the consumer price index rose 1.2% in the March quarter.
Published on 2023-04-19

New Zealand Inflation Rises 7.2% YoY in Q4
The inflation rate in New Zealand rose 7.20 percent YoY in the fourth quarter of 2022 at the same level of 7.20 percent in the third quarter of 2022. The prices rose at a faster pace for food (10.7% vs 8% in Q3), Alcoholic beverages and tobacco (5.9% vs 4.7%), Household contents (8.2% vs 7.1%), and health (8.2% vs 7.1%). In contrast, inflation eased for housing and household utilities (8% vs 8.7%), and transport (8.2% vs 7.1%). Meantime, the cost of communication fell (-0.3% vs +3.1%). Quarter on quarter, the consumer price index rose 1.4% in the December quarter.
Published on 2023-01-24

New Zealand Inflation Teeters Down to 7.2%
The inflation rate in New Zealand decreased to 7.20 percent YoY in the third quarter of 2022 from 7.30 percent in the second quarter of 2022, as housing and household utilities showed significant increases with rising prices for construction (+17%), rentals for housing (4.6%), and local authority rates (7.3%). The next largest contributor was the transport group, due to higher prices for petrol (+19%) and diesel (+72%). Quarter on quarter, the consumer price index rose 2.2% in the September quarter, with increases in vegetable prices (+24%) being the largest contributor.
Published on 2022-10-17

New Zealand Inflation Rate Hits Highest Level Since 1990
The annual inflation rate in New Zealand increased 7.3 percent in the second quarter of 2022, following a 6.9 percent gain in the previous period and above forecasts of 7.1 percent. It was the highest since the second quarter of 1990, as prices advanced faster for housing & utilities (9.1 percent vs. 8.6 percent in Q1 2022), transportation (14.5 percent vs. 14.3 percent), recreation & culture (4.9 percent vs. 4.8 percent) and alcoholic beverages & tobacco (3.7 percent vs. 2.9 percent). On the other hand, prices eased for food & non-alcoholic beverages (6.5 percent vs. 6.7 percent) and miscellaneous goods & services (5.5 percent vs. 5.6 percent). Compared to the previous quarter, inflation rose 1.7 percent, easing from a 1.8 percent gain in the last period but above market expectations of a 1.5 percent gain.
Published on 2022-07-17

New Zealand Inflation Rises to 30-Year Peak
The annual inflation rate in New Zealand increased 6.9% in the first quarter of 2022, following a 5.9 percent gain in the previous period but below forecasts of 7.1%. It was the highest since the second quarter of 1990, as prices advanced faster for housing & utilities (8.6 percent vs 7.6 percent in Q4 2021), food & non-alcoholic beverages (6.7 percent vs 4.1 percent), recreation & culture (4.8 percent vs 4.7 percent), miscellaneous good & services (5.6 percent vs 4.9 percent) and alcoholic beverages and tobacco (2.9 percent vs 1.8 percent). On the other hand, transport prices rose at a softer pace (14.3 percent vs 15.0 percent). Compared to the previous quarter, inflation increased to 1.8 percent.
Published on 2022-04-20

New Zealand Inflation Rate Highest in a Decade
Annual inflation rate in New Zealand increased to 4.9% in the third quarter of 2021, the highest since the second quarter of 2011 and above forecasts of 4.1%. Main upward pressure came from cost of housing and household utilities (6%), with home ownership up 12%; transport (13%), with private transport supplies and services up 15%; and food (3.1%), with restaurant meals and ready-to-eat food up 4.5%. Compared to the previous quarter, inflation increased to 2.2%, the highest since the December 2010 quarter. The main drivers were housing-related costs, such as construction of new houses and local authority rates.
Published on 2021-10-17

New Zealand Inflation Rate Hits 10-Year High
Annual inflation rate in New Zealand jumped to 3.3 percent year-on-year in the second quarter of 2021, from 1.5 percent in the previous three-month period and above market expectations of 2.8 percent. This was the biggest increase in consumer prices in nearly 10 years, reflecting a low base year due to the COVID-19 crisis and the ongoing economic recovery. Main upward pressure came from purchase of new housing (7.4 percent), petrol cost (16.1 percent), and rent prices (2.9 percent). On a quarterly basis, consumer prices rose by 1.3 percent, also the largest gain in over a decade.
Published on 2021-07-15

New Zealand Inflation Rate Climbs in Q1
Annual inflation rate in New Zealand increased to 1.5 percent in the first quarter of 2021 from 1.4 percent in the previous three months and compared with market expectations of a 1.4% gain. Transport prices rebounded (1.7 percent vs -3.7 percent in Q4) while cost advanced faster for miscellaneous good and services (1.9 percent vs 1.6 percent) and education (2.6 percent vs 0.9 percent). Meantime, housing and household utilities inflation was steady (at 2.6 percent). In contrast, prices went up at a softer pace for food (1.1 percent vs 2.5 percent) and recreation and culture (0.7 percent vs 1.8 percent). On a quarterly basis, consumer prices rose 0.8 percent over the previous period, following a 0.5 percent increase in the prior quarter.
Published on 2021-04-20