New Zealand’s consumer price index (CPI) rose 3.7% in the year to the September 2026 quarter, easing from June but leaving inflation above the central bank’s target despite a slowdown in the headline rate, Statistics New Zealand (Stats NZ) said Thursday.
The annual rate was down from 4.1% in the June quarter. Prices increased 0.7% during the September quarter, following a 1.5% rise in June. Reuters reported that economists in its poll had expected annual inflation of 3.8% and a quarterly increase of 0.8%. Westpac New Zealand had forecast the reported figures of 3.7% and 0.7%.
Price increases remained widespread. In the 12 months to September, 85.5% of items in the CPI basket became more expensive, and prices rose by more than 3% for 54.9% of items. That share was 38.5% in the 12 months to June.
Petrol had the strongest upward effect on the annual CPI total. Its price was 19.1% higher than a year earlier, and Stats NZ said it accounted for 17.5% of the annual increase, even though petrol fell 6.5% during the September quarter. Electricity prices rose 9.3% over the year, while purchase of housing rose 3.2%. The Reserve Bank of New Zealand (RBNZ) had linked the June-quarter inflation rise to fuel costs associated with conflict in the Middle East, according to its September statement.
The category figures also varied by time period. Tradables rose 0.2% during the September quarter and 4.3% over the year; non-tradables increased 1% quarterly and 3.3% annually. The RBNZ had projected annual inflation of 3.9% for the quarter. Its medium-term target range is 1% to 3%.
The RBNZ’s official cash rate (OCR) stands at 2.75% after a 25-basis-point increase on Sept. 2. The bank says rate changes affect mortgage, loan and savings rates: higher rates raise borrowing costs and make saving more rewarding. The latest figures continue EconoTimes’ earlier coverage of New Zealand inflation above the target.
The RBNZ’s next Monetary Policy Review is scheduled for Oct. 28. Stats NZ lists its next quarterly CPI release, covering the December quarter, for Jan. 27, 2027.
