New Zealand’s CPI rose 0.6% qoq in Q3, slightly below market expectations of 0.7% qoq. Annually, inflation slowed sharply from 3.3% yoy to 2.2% yoy, in line with forecasts.
This marks the first time since March 2021 that annual inflation has returned within RBNZ’s target range of 1 to 3%. The result was also softer than RBNZ’s own forecast of 0.8% quarterly and 2.3% annual inflation.
Rent prices were the largest contributor to the annual inflation figure, rising by 4.5%. Nearly 20% of the overall inflation increase came from rent.
On the other hand, lower fuel costs, with petrol prices dropping -8.0%, helped balance rising costs, alongside a notable -17.9% drop in vegetable prices following last year’s spike in potato, kūmara, and onion prices.
