New Zealand’s annual inflation rate eased to 3.7% in the third quarter of 2026, down from 4.1% in the previous quarter and slightly below market expectations of 3.8%. Despite this moderation, inflation remains above the Reserve Bank of New Zealand’s 1–3% target range.
Petrol was the single largest contributor to annual inflation, surging 19.1% amid higher international oil and fuel prices linked to conflict in the Middle East. The cost of building new homes rose 3.2%, reflecting increased material, subcontractor, labour, and fuel costs.
Electricity prices climbed 9.3%, international airfares were up 12.5%, and local authority rates and payments increased 6.2%. These rates, which are measured annually in the September quarter, have been a significant driver of inflation in recent years.
On a quarterly basis, the Consumer Price Index (CPI) rose 0.7%, a marked slowdown from the 1.5% increase recorded in the second quarter.