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

New Zealand: Inflation: percent change in the Consumer Price Index: The latest value from 2024 is 2.9 percent, a decline from 5.7 percent in 2023. In comparison, the world average is 6.0 percent, based on data from 155 countries. Historically, the average for New Zealand from 1960 to 2024 is 5.4 percent. The minimum value, -0.1 percent, was reached in 1999 while the maximum of 17.2 percent was recorded in 1980.

In April 2025, the food price index in New Zealand had risen by around *** percent in comparison to the same period of the previous year. The rising cost of food products contributed to the overall increasing cost of living in the country.

In the first quarter of 2025, the consumer price index (CPI) in New Zealand had decreased by *** percent in comparison to the same quarter of 2024. In the second quarter of 2022, the CPI in New Zealand experienced an increase of *** percent in comparison to the same period of 2021, which was the largest increase since the June quarter of 1990.

New Zealand Inflation Expectation: 10 Years Ahead data was reported at 2.070 % in Mar 2025. This records a decrease from the previous number of 2.190 % for Dec 2024. New Zealand Inflation Expectation: 10 Years Ahead data is updated quarterly, averaging 2.090 % from Sep 2017 (Median) to Mar 2025, with 31 observations. The data reached an all-time high of 2.280 % in Dec 2023 and a record low of 1.960 % in Jun 2020. New Zealand Inflation Expectation: 10 Years Ahead 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.I026: Inflation Expectation.

Inflation, consumer prices (annual %) in New Zealand was reported at 2.9228 % in 2024, according to the World Bank collection of development indicators, compiled from officially recognized sources. New Zealand - Inflation, consumer prices (annual %) - actual values, historical data, forecasts and projections were sourced from the World Bank on July of 2025.

In the June quarter of 2024, the consumer price index (CPI) in New Zealand was over ******* points. In June 2023, the CPI was around ** points lower. Overall, the CPI was rising during the observed period.

Inflation, GDP deflator: linked series (annual %) in New Zealand was reported at 3.6014 % in 2024, according to the World Bank collection of development indicators, compiled from officially recognized sources. New Zealand - Inflation, GDP deflator: linked series (annual %) - actual values, historical data, forecasts and projections were sourced from the World Bank on July of 2025.

In the first quarter of 2023, the household living costs price index (HLPI) in New Zealand had increased by *** percent in comparison to the first quarter of 2022. During the period between the first quarter of 2020 and the first quarter 2021, the HLPI increased by *** percent.

Key information about New Zealand Core CPI Change

• New Zealand Core CPI Change was reported at 2.713 % in Dec 2024.
• This records an increase from the previous number of 2.566 % for Sep 2024.
• New Zealand Core CPI Change data is updated quarterly, averaging 2.185 % from Jun 2000 to Dec 2024, with 99 observations.
• The data reached an all-time high of 7.502 % in Mar 2023 and a record low of 0.521 % in Sep 2012.
• New Zealand Core CPI Change data remains active status in CEIC and is reported by CEIC Data.
• The data is categorized under World Trend Plus’s Global Economic Monitor – Table: Core CPI: Y-o-Y Growth: Quarterly.

CEIC calculates quarterly Core Consumer Price Index Growth from quarterly Core Consumer Price Index. Stats NZ provides Core Consumer Price Index Growth with base June 2017=1000. Core Consumer Price Index excludes Food, Household Energy and Vehicle Fuels.

Graph and download economic data for Consumer Price Index: OECD Groups: All Items Non-Food Non-Energy: Total for New Zealand (CPGRLE01NZQ657N) from Q2 1969 to Q3 2023 about New Zealand, core, all items, CPI, inflation, price index, indexes, and price.

In the first quarter of 2025, the consumer price index (CPI) in New Zealand was **** points. This was an increase compared to the first quarter of 2024. The CPI has been rising overall during the observed period.

Inflation rate (GDP deflator) of New Zealand slumped by 13.21% from 4.1 % in 2023 to 3.6 % in 2024. Since the 29.10% surge in 2022, inflation rate (GDP deflator) sank by 38.87% in 2024. Inflation as measured by the annual growth rate of the GDP implicit deflator shows the rate of price change in the economy as a whole. The GDP implicit deflator is the ratio of GDP in current local currency to GDP in constant local currency.

New Zealand Non Tradable Inflation: YoY data was reported at 4.000 % in Mar 2025. This records a decrease from the previous number of 4.500 % for Dec 2024. New Zealand Non Tradable Inflation: YoY data is updated quarterly, averaging 3.250 % from Jun 2000 (Median) to Mar 2025, with 100 observations. The data reached an all-time high of 6.800 % in Mar 2023 and a record low of 1.500 % in Sep 2015. New Zealand Non Tradable Inflation: YoY data remains active status in CEIC and is reported by Stats NZ. The data is categorized under Global Database’s New Zealand – Table NZ.I002: Consumer Price Index: Jun2017=1000.

New Zealand Household Inflation Expectation: 2 Years - Mean data was reported at 3.900 % in Mar 2025. This records an increase from the previous number of 3.700 % for Dec 2024. New Zealand Household Inflation Expectation: 2 Years - Mean data is updated quarterly, averaging 3.700 % from Mar 2022 (Median) to Mar 2025, with 13 observations. The data reached an all-time high of 5.400 % in Mar 2022 and a record low of 2.500 % in Mar 2023. New Zealand Household Inflation Expectation: 2 Years - Mean 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.I027: Household Inflation Expectation.

Rents paid for housing in New Zealand increased year-on-year between 2011 and 2023. Nevertheless, the inflation-adjusted change was negative between 2021 and 2023, suggesting that rents grew at a slower rate than inflation. In 2023, the nominal increase in rents paid for housing amounted to 4.37 percent, while the real change (adjusted for inflation) was recorded at a negative 1.36 percent.

Consumer Price Index CPI in New Zealand increased to 1306 points in the second quarter of 2025 from 1299 points in the first quarter of 2025. This dataset provides - New Zealand Consumer Price Index (CPI) - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Graph and download economic data for Consumer Price Index: OECD Groups: Housing: Housing Excluding Imputed Rentals for Housing for New Zealand (NZLCPGRHO02GPQ) from Q3 1999 to Q3 2023 about imputed, New Zealand, rent, CPI, price index, indexes, and price.

In April 2025, the food price index of fruit and vegetables in New Zealand was ****. During the reported period, the food price index of fruit and vegetables in the country reached a peak in June 2023.