Inflation hits top of target band

The consumers price index (CPI) increased three per cent in the year to the September quarter, according to the latest figures from Stats NZ.

It follows a 2.7 per cent increase in the 12 months to the June 2025 quarter, with Stats NZ noting the Reserve Bank of New Zealand’s target band for the annual inflation rate is one to three per cent.

“The three per cent annual inflation rate in the September 2025 quarter is the highest since the June 2024 quarter when it was 3.3 per cent,” adds Nicola Growden, prices and deflators spokesperson.

The largest contributor to the latest annual inflation rate was electricity, which rose 11.3 per cent over the year studied, while rent and local authority rates and payments were other big risers.

As for the transport group, its prices increased 1.8 per cent year-on-year. This included the purchase of vehicles rising 2.4 per cent and passenger transport services climbing by 2.8 per cent.

When it came to quarterly inflation, the CPI rose one per cent in the September 2025 quarter when compared with the June quarter.

Local authority rates and payments were up 8.8 per cent over that spell to be the largest contributor to the rise.

The transport group grew by 0.6 per cent quarter-on-quarter after prices for purchasing vehicles fell  0.1 per cent and passenger transport services rose 1.8 per cent.