Acting Finance Minister, Chris Bishop, has welcomed the latest figures showing inflation remaining within the Reserve Bank’s target range.
Stats NZ reported today that annual Consumers Price Index (CPI) inflation rose from 2.7% in the year to June to 3% in the year to September 2025.
“This is the quarter in which most economists were expecting inflation to peak so it is pleasing to see it remain within the Reserve Bank’s target range of 1 to 3%,” said Mr Bishop.
“Expectations are that the rate will decline towards 2% in the first half of next year, easing pressure on households and businesses.
“However, continued discipline will be required by the Government to ensure inflation does not return to the 7.3% peak it reached under the previous government in 2022.”
Top contributors to the annual increase included electricity – up 11.3% – and local authority rates and payments up 8.8%.
“Encouragingly, domestic inflation continues to fall. It is down from 3.7% in the June quarter, to 3.5%. This is the lowest rate since mid-2021, and is down from a high of 6.8% in the March quarter of 2023.”
“Stats NZ’s update highlights the importance of increasing electricity supply and competition, and the significant impact that local government rates have on New Zealanders’ wallets,” Minister Bishop said.
