Annual inflation stays steady

The consumers price index (CPI) increased 2.2 per cent in the December 2024 quarter when compared with the same period a year ago, according to the latest figures from Stats NZ.

Nicola Growden, prices and deflators spokesperson, says the rise follows an increase by the same amount in the September quarter. 

“This is the second consecutive quarter that the annual inflation rate has been within the Reserve Bank of New Zealand’s target band of one to three per cent,” she adds.

Between the June 2021 and June 2024 quarters annual inflation was above the target band.

Higher rent prices, up 4.2 per cent, were the largest contributor to the annual inflation rate and accounted for nearly one-fifth of the CPI increase.

As for the transport group, its prices fell 3.6 per cent year-on-year. This included the purchase of vehicles dropping 3.9 per cent and passenger transport services falling by 1.3 per cent.

Stats NZ’s latest figures also show the CPI rose by 0.5 per cent in the December 2024 quarter from the previous three-month period, with second-hand cars a significant contributor to the increase after climbing 4.7 per cent.

The transport group grew by 1.5 per cent quarter-on-quarter thanks to a 1.6 per cent increase in the overall prices for purchasing vehicles and passenger transport services rising by 6.4 per cent.