Inflation Hits 12-month High Of 2.7% In New Zealand

Faizan Hashmi Published July 21, 2025 | 10:30 AM

WELLINGTON, (UrduPoint / Pakistan Point News / WAM - 21st Jul, 2025) Inflation in New Zealand has reached a 12-month-high, driven by rising costs in rents, rates, electricity and food. Despite the increase, the rate remains within the Reserve Bank’s target band and is unlikely to prevent further rate cuts.

According to Stats NZ, the consumer price index rose by 0.5 percent in the three months ending June, lifting the annual inflation rate to 2.7 percent, up from 2.5 percent in the previous quarter - the highest figure recorded since June last year.

"Although the annual inflation rate has increased from the March 2025 quarter, it remains within the Reserve Bank’s target band of 1 to 3 percent - the fourth consecutive quarter it has done so," said Nicola Growden, Senior Manager of Prices at Stats NZ.

Non-tradable domestic prices continued to be the main driver of inflation, rising 0.7 percent for the quarter and 3.7 percent over the year, the slowest annual increase in four years.