Inflation Rate in New Zealand remained unchanged at 2.20 percent in the fourth quarter of 2024 from 2.20 percent in the third quarter of 2024. This dataset provides - New Zealand Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

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.

The main stock market index in New Zealand (NZX 50) decreased 805 points or 6.14% since the beginning of 2025, according to trading on a contract for difference (CFD) that tracks this benchmark index from New Zealand. New Zealand Stock Market (NZX 50) - values, historical data, forecasts and news - updated on March of 2025.

New Zealand 10Y Bond Yield was 4.69 percent on Thursday March 27, according to over-the-counter interbank yield quotes for this government bond maturity. New Zealand 10-Year Government Bond Yield - values, historical data, forecasts and news - updated on March of 2025.