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.

The Consumer Price Index in New Zealand increased 0.90 percent in March of 2025 over the previous month. This dataset provides - New Zealand Inflation Rate QoQ - actual values, historical data, forecast, chart, statistics, economic calendar and news.

New Zealand ANZ Forecast: Consumer Price Index (CPI): Non-Tradable Inflation: YoY data was reported at 3.100 % in 2026. This records an increase from the previous number of 3.000 % for 2025. New Zealand ANZ Forecast: Consumer Price Index (CPI): Non-Tradable Inflation: YoY data is updated yearly, averaging 3.100 % from Dec 2018 (Median) to 2026, with 9 observations. The data reached an all-time high of 6.600 % in 2022 and a record low of 2.600 % in 2020. New Zealand ANZ Forecast: Consumer Price Index (CPI): Non-Tradable Inflation: YoY data remains active status in CEIC and is reported by ANZ Bank New Zealand. The data is categorized under Global Database’s New Zealand – Table NZ.I003: Consumer Price Index: Forecast: ANZ Bank Ltd.

New Zealand RBNZ Forecast: Consumer Price Index (CPI): YoY: Quarterly data was reported at 2.000 % in Mar 2028. This stayed constant from the previous number of 2.000 % for Dec 2027. New Zealand RBNZ Forecast: Consumer Price Index (CPI): YoY: Quarterly data is updated quarterly, averaging 2.000 % from Sep 2009 (Median) to Mar 2028, with 75 observations. The data reached an all-time high of 7.500 % in Dec 2022 and a record low of 0.000 % in Mar 2015. New Zealand RBNZ Forecast: Consumer Price Index (CPI): YoY: Quarterly data remains active status in CEIC and is reported by Reserve Bank of New Zealand. The data is categorized under Global Database’s New Zealand – Table NZ.I006: Consumer Price Index: Forecast: Reserve Bank of New Zealand.

Cost of food in New Zealand increased 3.70 percent in April 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.

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.

The House Construction industry plays a vital role in New Zealand's economy, meeting a need for home ownership and rental accommodation while stimulating economic growth. A shift in housing preferences towards medium-to-high-density apartments and townhouses, reflecting an escalation in house and land prices and modern lifestyle choices, is constraining the industry’s long-term performance. Changing government policies on first-home buyer grants, mortgage payment taxation and the promotion of social housing also profoundly affect the industry's performance. During the COVID-19 pandemic, the industry benefited from strong population growth, higher household savings and record-low mortgage rates. Government measures like first-home buyer stimulus, easing loan-to-value (LTV) restrictions and Housing Acceleration Fund (HAF) investments further supported growth. Still, a hike in mortgage interest rates as the Reserve Bank of New Zealand attempted to rein in inflation has choked off housing investment in recent years and slashed new dwelling consents. Given the rollercoaster that homebuilders have been on over the past five years, industry revenue is only expected to edge up at an annualised 0.3%, to $21.0 billion, over the past five years despite contracting by an estimated 2.5% in 2024-25. While some builders thrived during a 2022-23 housing boom, industry profit margins have plummeted in recent years with slumping housing investment. Many builders saw their profit shrink amid climbing input prices and supply chain disruptions, and some builders on fixed-price contracts struggled to absorb the higher input costs. Looking ahead, homebuilders face harsh conditions over the next few years, losing ground to the Multi-Unit Apartment and Townhouse Construction industry. Mounting population pressures support constructing new accommodation, and easing mortgage interest rates will encourage investment in residential building construction and are projected to drive total dwelling consents up by an annualised 2.3%. However, continued growth in house and land prices will drive investment towards medium-to-high-density dwelling options, like duplexes, townhouses, flats and apartments. In light of this, industry revenue is forecast to fall marginally at an annualised 0.2% to $20.9 billion through the end of 2029-30.

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.

The Gross Domestic Product per capita in New Zealand was last recorded at 41766.87 US dollars in 2023. The GDP per Capita in New Zealand is equivalent to 331 percent of the world's average. This dataset provides - New Zealand GDP per capita - actual values, historical data, forecast, chart, statistics, economic calendar and news.

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.

The transportation sub-index of the CPI basket in New Zealand increased to 1264 points in the first quarter of 2025 from 1254 points in the fourth quarter of 2024. This dataset provides - New Zealand Cpi Transportation- actual values, historical data, forecast, chart, statistics, economic calendar and news.

Housing Index in New Zealand increased to 2322 Points in April from 2295 Points in March of 2025. This dataset provides - New Zealand House Prices MoM Change - actual values, historical data, forecast, chart, statistics, economic calendar and news.