New Zealand’s overall price growth hit 3 % in the September 2025 quarter, up from 2.7 % the previous quarter, Stats NZ said on Monday. The 3 % figure sits at the top end of the Reserve Bank of New Zealand’s 1‑3 % inflation target, the bank’s statement noted.
Stat NZ’s spokesperson Nicola Growden said the September rate was the highest since June 2024, when inflation ran at 3.3 %. Housing and household utilities were the biggest drivers of price rises, especially power, rent and local authority rates, which together account for roughly 17 % of the consumer price index basket.
Electricity prices surged 11.3 % year‑on‑year, the steepest jump since the March 1989 quarter, when they rose 12.8 %. Growden added that the latest electricity hike is the strongest in more than three decades, reflecting long‑standing market reforms.
Conversely, prices of pharmaceuticals, telecoms equipment and petrol fell over the year, easing some cost pressure, according to the agency. On a quarterly basis, consumer prices rose 1 % in the September quarter versus June, driven by higher local authority rates and a 12.2 % jump in vegetable prices linked to the season.
Acting Finance Minister Chris Bishop said he expects inflation to ease toward 2 % in early 2026, which would relieve households and businesses from the current cost burden.
Stat NZ also reported that food prices rose 4.1 % year‑on‑year to September 2025, the smallest increase since April. The grocery segment saw the largest share of the gain, up 3.9 %.
Key staples posted notable hikes: white bread jumped 49.6 %, cheese rose 31.4 %, butter climbed 28.9 % and milk was up 15.1 %. Vegetables added 5.2 % overall, with cabbage nearly doubling at 95 % and lettuce up 55 %. Growden noted that while all five food groups are still climbing, the overall food‑price rise has slowed.
On a monthly basis, September food costs fell 0.4 % from August, the first month‑to‑month decline since February 2025, thanks to price drops in vegetables and chocolate.
Source: ianslive
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