2025.10.1921:53:39UTC+00New Zealand Inflation Rate Rises to 3% in Q3

In the third quarter of 2025, New Zealand's annual inflation rate climbed to 3%, marking the highest increase since the same period in 2024. This rise, from 2.7% previously, matched forecasts. Significant contributors to this upsurge were rooted in the housing and household utilities sector, with notable increases in electricity prices, which surged by 11.3%—the highest since the March 1989 quarter—alongside rent, which rose by 2.6%, and local authority rates and payments, which increased by 8.8%. The Consumer Price Index (CPI) saw a 1% rise compared to the previous quarter, representing the most substantial quarterly increase in two years, following a 0.5% rise in the period before. The largest contributing factor to this quarterly rise was the 8.8% increase in local authority rates and payments. Additionally, a 12.2% jump in vegetable prices, primarily due to seasonal increases for tomatoes, cabbage, capsicums, lettuce, and broccoli, contributed to the inflation increase.