New Zealand Quarterly Inflation Below Forecasts in Q2

New Zealand's Consumer Price Index rose 0.5% quarter-on-quarter in the three months to June 2025, easing from a 0.9% increase in the previous quarter and falling short of market expectations of 0.6%. The largest contributor to the quarterly increase was cultural services, which jumped 9.5%, largely due to higher prices for TV streaming subscriptions. This category accounted for 25.8% of the overall CPI rise. Electricity prices also climbed 4.9%, contributing 24.7%, while vegetable prices surged 10%, adding 20.4% to the total increase. These gains were partially offset by declining fuel and accommodation costs. Petrol prices fell 4.8%, exerting a -31.7% drag on the index, while domestic accommodation services dropped 9.2%, contributing -11.1%. On an annual basis, CPI rose 2.7% in the June quarter, slightly higher than the 2.5% increase recorded in the previous period.

The Consumer Price Index in New Zealand picked up to 0.9% in March quarter of 2025 over the previous quarter following a 0.5% increase in the three month to December 2024. It marked the highest reading since September 2023, compared to market estimates of 0.7% rise. The largest contributor to the quarterly rise was petrol prices, which climbed 4.6%, accounting for 17% of the overall 0.9% increase. Prices for tertiary and other post-school education surged 22.6% in the March 2025 quarter, contributing 11% to the total CPI rise. This jump follows the end of the first-year Fees Free program at the close of 2024, which was replaced by a final-year Fees Free scheme beginning on 1 January 2025. Students who previously claimed the first-year Fees Free benefit are not eligible for the final-year scheme, resulting in more students bearing the full cost of study in 2025. On an annual basis, consumer prices rose 2.5% in the March quarter, up from a 2.2% increase recorded in the previous period.