The country’s annual inflation rate has climbed above the Reserve Bank’s target range, with new figures from Stats NZ showing the Consumers Price Index (CPI) rose 4.1 percent in the 12 months to the June 2026 quarter.
The increase marks a sharp rise from the 3.1 percent annual rate recorded in the March quarter, pushing inflation beyond the Reserve Bank’s 1 to 3 percent target band.
Fuel costs were the dominant factor behind the increase. Diesel prices surged 71 percent over the year, while petrol prices also rose significantly. Although households spend far more on petrol than diesel, both fuels combined had a major impact on overall inflation. Stats NZ said that without changes in petrol and diesel prices, annual inflation would have been 2.9 percent.
Electricity prices also placed pressure on household budgets, rising 12 percent over the year. Other significant contributors included local authority rates and payments, which increased 8.8 percent, and the cost of building a new home, which rose 2.7 percent.
Price increases were widespread across the economy, with more than 80 percent of the goods and services measured in the CPI becoming more expensive over the past year, while only around 15 percent recorded price falls.
On a quarterly basis, the CPI increased 1.5 percent between April and June. Petrol prices jumped 20.1 percent during the quarter and diesel prices climbed 47.7 percent, with the two fuels accounting for almost two-thirds of the quarterly increase.
Excluding petrol and diesel, quarterly inflation was a more modest 0.5 percent.
The cost of constructing new homes rose 1.6 percent during the quarter, the largest quarterly increase since late 2022. Stats NZ said builders attributed the higher costs to more expensive materials, subcontractors, fuel and labour. Electricity prices also increased 4.4 percent over the three-month period, adding further pressure to household expenses.
They could reduce the pressure on people by cutting regressive taxes like GST but of course, we would need honest, competent government for that to happen.
How anyone can believe that with major underpinning costs rising so fast, overall inflation is 4% is beyond me.
When you look at your bank account, do you feel like your money buys just 4% less than last year?
Official stats are a thoroughly rigged game.
Ahhh..the inevitable consequences of deliberate economic destruction. Months of lockdown, massive debt, no tangible benefits for said debt, destroyed SMEs, destructive demonic sabotage of competition to the monopolies ( remember they closed minimarts during Convid), pay consultants millions to rort the taxpayers, vilify entrepreneurship. Nothing unusual here people. Pigs
Thanks to the three zionist stooges in the coalition for giving money away to criminal zelensky and the j3wish climate scammers, rarher than subsidising petrol and building relationships with Iran and Qatar.
But lets keep voting for them!
Winston will save us, not.
Lies, damn lies and government statistics. The real rate of annual inflation is more than double their CPI lying lie. Inflation is always and everywhere a monetary phenomenon.