Annual Inflation At 3.7 Percent In September 2026

New Zealand’s consumers price index (CPI) increased 3.7 percent in the 12 months to the September 2026 quarter, according to figures released by Stats NZ today.

The 3.7 percent increase follows a 4.1 percent increase in the 12 months to the June 2026 quarter. The Reserve Bank of New Zealand’s target band for the annual inflation rate is 1 to 3 percent.

Petrol (91 and 95/98 octane) was the largest upward contributor to the annual inflation rate, up 19.1 percent (17.5 percent contribution to the 3.7 percent annual inflation rate).

“Petrol prices fell in the September 2026 quarter, compared with the June 2026 quarter,” prices and deflators spokesperson Nicola Growden said.

“However, petrol prices remained higher than in the September 2025 quarter.”

If petrol prices had not changed, the CPI would have risen 3.2 percent in the 12 months to the September 2026 quarter.

The cost of constructing new housing also increased, up 3.2 percent (7.9 percent contribution to the annual inflation rate).

“Respondents reported that higher costs for materials, subcontractors, labour, and fuel contributed to rising prices for new housing,” Growden said.

Other contributors to the annual CPI increase were:

• electricity – up 9.3 percent (7.2 percent contribution)
• international airfares – up 12.5 percent (6.0 percent contribution)
• local authority rates and payments – up 6.2 percent (5.5 percent contribution).

Local authority rates and payments are measured once a year in the September quarter and have been one of the main drivers of annual inflation in recent years.

“The 6.2 percent annual increase in rates in the September 2026 quarter follows an 8.8 percent annual increase in the September 2025 quarter,” Growden said.

Olive oil and butter, vegetables, and audio-visual equipment all fell in price over the year.

More than 85 percent of the CPI basket increased in price in the 12 months to the September 2026 quarter. In contrast, about 13 percent of the basket fell in price – the lowest proportion since the December 2023 quarter.

Quarterly inflation at 0.7 percent

The CPI rose 0.7 percent in the September 2026 quarter, compared with the June 2026 quarter.

International airfares were the largest upward contributor to the quarterly inflation rate, up 14.3 percent.

“This was the largest quarterly increase in international airfares since the December 2022 quarter. The increase was mainly driven by higher fares to Europe and Asia,” Growden said.

Lower petrol prices were the largest downward contributor to the quarterly inflation rate, down 6.5 percent.

“Petrol prices fell 6.5 percent in the September 2026 quarter after rising 20.1 percent in the June 2026 quarter,” Growden said.

Selected price indexes: September 2026 has more information on monthly fuel prices and international airfares.

Higher prices for local authority rates and payments, vegetables, and construction also contributed to the quarterly increase in the CPI.