Prices in New Zealand rose by 1.72 percent in 2020. Central bankers at the Reserve Bank of New Zealand were surely relieved to see the rebound from the dangerously low .29 percent inflation in 2015.

What is inflation?

Inflation is the rise in price levels in an economy. 2 percent inflation means 100 New Zealand dollars will be worth 98 dollars in one year. While the precise inflation target varies, most economists agree that inflation between 2 to 3 percent is optimal for an economy. High inflation can lead to higher unemployment because firms would rather wait and higher workers at the same price using future dollars, making the labor relatively cheaper. However, it affects the trade balance because of the relatively higher purchasing power of foreign currencies.

Other risks of inflation and deflation

Inflation helps a country with higher national debt when the debt is in the local currency, because the country can repay with the future dollars which are relatively cheaper. Deflation, then, helps when debts are in a foreign currency. The main problem with deflation is that investors prefer to hold their money, waiting to invest until it is worth more. This is particularly true of countries like New Zealand, where the lion’s share of employment is in the services sector.

Inflation Rate in New Zealand increased to 2.50 percent in the first quarter of 2025 from 2.20 percent in the fourth quarter of 2024. This dataset provides - New Zealand Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Cost of food in New Zealand increased 4.60 percent in June of 2025 over the same month in the previous year. This dataset provides - New Zealand Food Inflation - actual values, historical data, forecast, chart, statistics, economic calendar and news.

In a survey conducted in New Zealand in June 2022, almost half of the respondents indicated feeling highly concerned about the cost of living and the impact of inflation. Only around two percent of respondents reported being not at all concerned.

ANZ Roy Morgan Consumer Confidence Index in New Zealand increased to 98.80 points in June from 92.90 points in May of 2025. This dataset includes a chart with historical data for New Zealand ANZ Roy Morgan Consumer Confidence Index.

The real interest rate in New Zealand decreased by *** percentage points (-****** percent) in 2018 in comparison to the previous year. As a result, the real interest rate in New Zealand saw its lowest number in 2018 with -**** percent. Real interest rate is the lending interest rate adjusted for inflation as measured by the GDP deflator.Find more statistics on other topics about New Zealand with key insights such as market capitalization of listed domestic companies.

A demonstration of various potential relationships between the mean of the count distribution (λ) and the probability of an excess zero (π) under the general form of the linked model, logit(π) = γ0 + γ1log(λ).

A table presenting summary statistics for the posterior distributions of estimated parameters.

Abstract

Data used in Stan Fischer's paper, The Role of Macroeconomic Factors in Growth (JME, 1993).

Using a regression analog of growth accounting, the author presents cross-sectional and panel regressions showing that growth is negatively associated with inflation, large budget deficits, and distorted foreign exchange markets. Supplementary evidence suggests that the causation runs from macroeconomic policy to growth. The framework makes it possible to identify the channels of these effects: inflation reduces growth by reducing investment and productivity growth; budget deficits also reduce both capital accumulation and productivity growth. Examination of exceptional cases shows that while low inflation and small deficits are not necessary for high growth even over long periods, high inflation is not consistent with sustained growth.

Geographic coverage

• Afghanistan
• Angola
• Argentina
• Burundi
• Benin
• Bangladesh
• Bahrain
• Bahamas
• Belize
• Bolivia
• Brazil
• Barbados
• Myanmar
• Botswana
• Central African Rep
• Chile
• China
• Cote d'Ivoire
• Cameroon
• Congo
• Colombia
• Comoros
• Costa Rica
• Cyprus
• Dominican Republic
• Algeria
• Ecuador
• Egypt
• Spain
• Ethiopia
• Fiji
• Gabon
• Ghana
• Guinea
• Gambia, The
• Guinea-Bissau
• Greece
• Grenada
• Guatemala
• Guyana
• Hong Kong
• Honduras
• Haiti
• Hungary
• Burkina Faso
• Indonesia
• India
• Iran
• Iraq
• Iceland
• Israel
• Jamaica
• Jordan
• Japan
• Kenya
• Kampuchea
• South Korea
• Kuwait
• Laos
• Lebanon
• Liberia
• Libya
• St. Lucia
• Sri Lanka
• Lesotho
• Morocco
• Madagascar
• Maldives
• Mexico
• Mali
• Malta
• Mozambique
• Mauritania
• Mauritius
• Malawi
• Malaysia
• Niger
• Nigeria
• Nicaragua
• Nepal
• New Zealand
• Taiwan
• Oman
• Pakistan
• Panama
• Peru
• Philippines
• Papua New Guinea
• Poland
• Portugal
• Paraguay
• Romania
• Rwanda
• Saudi Arabia
• Sudan
• Senegal
• Singapore
• Sierra Leone
• El Salvador
• Somalia
• Suriname
• Swaziland
• Syria
• Chad
• Togo
• Thailand
• Trinidad and Tobago
• Tunisia
• Turkey
• Tanzania
• Uganda
• Uruguay
• Venezuela
• Viet Nam
• Western Samoa
• South Yemen
• North Yemen
• Yugoslavia
• South
• Zaire
• Zambia
• Zimbabwe

Kind of data

Aggregate data [agg]

Mode of data collection

Other [oth]

The benchmark interest rate in New Zealand was last recorded at 3.25 percent. This dataset provides - New Zealand Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Consumer Price Index CPI in New Zealand increased to 1299 points in the first quarter of 2025 from 1287 points in the fourth quarter of 2024. This dataset provides - New Zealand Consumer Price Index (CPI) - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2024. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 116.2 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, the home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.

Wages in New Zealand increased 2.50 percent in March of 2025 over the same month in the previous year. This dataset includes a chart with historical data for New Zealand Wage Growth.