FX.co ★ New Zealand PPI Input Unexpectedly Falls in Q4

Producer input prices in New Zealand declined by 0.5% quarter-on-quarter in the three months to December 2025, reversing a 0.2% increase in the previous quarter and sharply undershooting market expectations of a 0.5% rise. The fall was largely driven by a steep 24.4% drop in electricity and gas supply costs and a 6.9% decline in dairy product manufacturing, which more than offset a 6.0% increase in meat product costs. This unexpected contraction points to a rapid easing of upstream cost pressures, running counter to forecasts for persistent inflation.