Annual Inflation At 4.1 Percent In June 2026

New Zealand’s consumers price index (CPI) increased 4.1 percent in the 12 months to the June 2026 quarter, according to figures released by Stats NZ today.

The 4.1 percent increase follows a 3.1 percent increase in the 12 months to the March 2026 quarter. The Reserve Bank of New Zealand’s target band for the annual inflation rate is 1 to 3 percent.

The largest upwards contributor to the annual inflation rate was petrol, up 27.5 percent.

“Higher petrol prices accounted for almost a quarter of the 4.1 percent annual increase,” prices and deflators spokesperson Nicola Growden said.

Diesel prices also increased, up 71 percent (7.7 percent contribution to the 4.1 percent annual inflation rate).

New Zealand households spend about eight times more on petrol than on diesel. This means that petrol prices have a larger impact on the CPI than diesel prices.

If petrol and diesel prices had not changed, the CPI would have risen 2.9 percent in the 12 months to the June 2026 quarter.

Other contributors to the annual CPI increase were:

• electricity – up 12.0 percent (8.4 percent contribution to the 4.1 percent annual inflation rate)
• local authority rates and payments – up 8.8 percent (6.7 percent contribution)
• construction of new housing – up 2.7 percent (6.4 percent contribution).

More than 80 percent of the CPI basket increased in price in the 12 months to the June 2026 quarter. In contrast, only about 15 percent of the basket fell in price.

Quarterly inflation at 1.5 percent

The CPI rose 1.5 percent in the June 2026 quarter, compared with the March 2026 quarter.

Higher petrol prices were the largest contributor to the quarterly inflation rate, up 20.1 percent. Diesel prices also increased, up 47.7 percent.

“Together, petrol and diesel accounted for almost two-thirds of the 1.5 percent quarterly increase,” Growden said.

Excluding the effect of petrol and diesel, the CPI rose 0.5 percent in the June 2026 quarter.

Petrol and diesel prices rose in the month of April and fell in May and June.

Selected price indexes: June 2026 has more information on monthly fuel prices.

Construction of new housing (up 1.6 percent) and electricity (up 4.4 percent) also contributed to the quarterly increase in the CPI.

“The quarterly rise for construction was the largest since the December 2022 quarter,” Growden said.

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