Aotearoa New Zealand’s Consumers Price Index (CPI) rose 2.5 percent in the year to the March 2025 quarter, according to Stats NZ.
This marks the third consecutive quarter where annual inflation has remained within the Reserve Bank’s target range of one to three percent, suggesting a stabilising trend after several years of elevated inflation.
The 2.5 percent rise follows a 2.2 percent annual increase to the December 2024 quarter. Stats NZ prices and deflators spokesperson Nicola Growden said the latest figure continues a period of easing price pressures.
“The annual inflation rate is within the Reserve Bank of New Zealand’s target band of 1 to 3 percent for the third consecutive quarter,” said Growden.
Food prices were a major contributor, rising 3.5 percent over the year. Grocery food prices increased 4.6 percent, driven by items such as chocolate, potato crisps, and yoghurt. Fruit and vegetable prices fell slightly, down 0.7 percent, as supply chains stabilised and seasonal availability improved.
Housing and household utilities also played a role, rising 3.6 percent. The increase was largely due to construction costs for new homes, alongside rent rises. While construction costs have eased from their peak, they remain a key driver of household expenditure.
Transport prices increased 1.7 percent annually, with airfares and vehicle insurance contributing to the rise, offset in part by lower fuel prices.
From June 2021 to June 2024, inflation consistently sat above the target range due to global supply constraints, high shipping costs, and domestic labour shortages. The return to target-aligned inflation suggests monetary policy measures and easing supply pressures are taking effect.
Detailed results and downloadable data can be accessed via the Stats NZ website.
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