New Zealand’s Labor Cost Index rose 0.4% quarter-over-quarter in the third quarter of 2026, easing from a 0.7% increase in the second quarter of 2026. The latest data, updated on 3 November 2026, show a moderation in wage and labor cost pressures compared with earlier in the year.
On a quarter-over-quarter basis, the current 0.4% reading reflects a slower pace of growth than the previous quarter’s 0.7%, which itself was measured against the first quarter of 2026. The comparison highlights a cooling trend in labor cost inflation, as the “actual” figure for the third quarter represents a softer increase than the “previous” quarter’s change.
The deceleration in the Labor Cost Index may be closely watched by policymakers and markets as an indicator of easing wage pressures, with potential implications for inflation dynamics and future monetary policy decisions in New Zealand.