The CPI has increased 3.1 percent in 2025, according to new data released by Stats NZ, following a three percent increase in September.
New Zealand’s consumers price index (CPI) increased 3.1 percent in the 12 months to the December 2025 quarter, according to figures released by Stats NZ today.
The 3.1 percent increase follows a 3.0 percent increase in the 12 months to the September 2025 quarter. The Reserve Bank of New Zealand’s target band for the annual inflation rate is one to three percent.
The 3.1 percent annual inflation rate in the December 2025 quarter is the highest annual rate since the June 2024 quarter, when it was 3.3 percent.
“While the annual inflation rate has slowed considerably since its most recent peak of 7.3 percent in the June 2022 quarter, it has increased each quarter since the December 2024 quarter, when it was 2.2 percent,” prices and deflators spokesperson Nicola Growden said.
Like last quarter, the largest contributors to the annual inflation rate were in the housing and household utilities group. In the 12 months to the December 2025 quarter, the main contributors were electricity, local authority rates and payments, and rent.
Growden said annual electricity increases remain at their highest since the late 1980s, when there were several major reforms in the electricity market.
Other significant contributors to the annual CPI increase were meat and poultry, overseas accommodation, milk, cheese and eggs, and telecommunication services.
“More than 80 percent of the CPI basket increased in price over the past year, the highest proportion of increases recorded in 18 months,” Growden said.
“Over half of the CPI basket increased in price by 3.0 percent or less.”
Lower vegetable prices, down 16.5 percent, helped offset the quarterly rise.
“Lower prices for seasonal vegetables like tomatoes, cucumbers, capsicums, lettuce, and broccoli contributed to the fall in vegetable prices.”
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