New Zealand’s annual inflation eased to 3.7 percent in the September quarter from 4.1 percent in June. Petrol prices fell during the quarter but remained sharply higher than a year earlier, leaving fuel as the largest annual contributor. Higher international airfares, electricity and housing costs kept pressure on households as inflation stayed above the central bank’s target range. Prices rose 0.7 percent from the previous quarter.
Petrol prices were 19.1 percent higher than a year earlier and accounted for 17.5 percent of the annual inflation increase. Stats NZ calculated that annual inflation would have been 3.2 percent had petrol prices remained unchanged. New housing construction costs rose 3.2 percent annually, with survey respondents citing materials, subcontractors, labour and fuel costs.[1]
Electricity rose 9.3 percent over the year, and international airfares increased 12.5 percent. Local authority rates and payments rose 6.2 percent. That category is measured annually in the September quarter; its increase in the corresponding period last year was 8.8 percent.[1]
International airfares rose 14.3 percent from the preceding quarter, their largest quarterly increase since December 2022. Stats NZ spokesperson Nicola Growden identified fares to Europe and Asia as the main drivers. Petrol prices fell 6.5 percent after rising 20.1 percent in the June quarter, making the largest downward contribution to quarterly inflation. More than 85 percent of the basket rose in price over the year, while around 13 percent declined.[1]
