New Zealand’s Inflation Increases to 2.7 Percent in June
(MENAFN) New Zealand’s inflation rate edged up to 2.7% in the year ending June 2025, primarily fueled by steep increases in local government rates and continued rent hikes.
According to Stats NZ, the latest annual figure marks a modest uptick from the 2.5% recorded in the year to March 2025. Despite the rise, inflation has now remained within the Reserve Bank’s target band of 1–3% for the fourth straight quarter.
The statistics agency noted that a sharp 8% year-on-year drop in petrol prices played a key role in keeping inflation in check. Stats NZ emphasized that without the decline in fuel costs, the annual inflation rate would have reached 3.2% for the June period.
The primary factor behind the inflation rise was a 12.2% spike in local authority rates, which accounted for 13% of the total annual increase, said Stats NZ prices and deflators spokesperson Nicola Growden.
Rents climbed 3.2% over the 12-month span—still the smallest yearly gain in four years, according to the agency’s data.
On a quarterly basis, consumer prices increased 0.5% in the three months to June. That jump was led by a 9.5% surge in cultural services and a 4.9% rise in electricity costs—the most significant electricity increase in over ten years. Falling petrol prices, which dropped 4.8% during the quarter, helped cushion the overall rise, Stats NZ added.
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