FX.co ★ New Zealand Labour Cost Growth Cools Slightly in Q4 2025, Easing from Prior Quarter

New Zealand’s Labour Cost Index (LCI) growth eased marginally in the fourth quarter of 2025, signaling a slight moderation in wage pressures. Quarter-over-quarter, the LCI rose 0.4% in Q4 2025, down from a 0.5% increase in the third quarter of 2025.

The data, updated on 3 February 2026, show that while labour costs are still rising, the pace of growth has slowed compared with the previous quarter. On a quarter-over-quarter basis, the “actual” figure for Q4 2025 reflects the change from Q3 to Q4, whereas the “previous” reading captures the change from Q2 to Q3 2025. This modest deceleration may be interpreted by markets and policymakers as a sign that wage-driven cost pressures are stabilizing, though labour costs remain on an upward trajectory.