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.