New Zealand inflation accelerates to 2.5%

The news: New Zealand’s annual inflation rate accelerated to 2.5% in the first quarter, exceeding estimates, according to Statistics New Zealand. It was the country's first annual CPI increase since March 2022.

The numbers: Higher prices during the 12 months to March 2025 were recorded for housing rentals (up 3.7%), local authority rates (up 12.2%) and payments and purchase of housing (up 1.9%).

These were offset by lower prices for petrol (down 2.8%) and early childhood education (down 22.8%).

The context: Despite the acceleration, the country’s inflation rate remains within the Reserve Bank of New Zealand’s target band of 1% and 3%.