Economic snapshot: Households and businesses experience higher fuel prices in the June 2026 quarter

Our economic snapshot summarises important economic statistics for the June 2026 quarter.

It uses statistics drawn from key Stats NZ datasets to provide insights into New Zealand’s overall economic performance.

Data sources has more information about the statistics used in this snapshot.

At a glance

• Fuel prices rose, affecting households and businesses.
• Quarterly gross domestic product (GDP) increased 0.2 percent.
• Petrol prices drove consumer inflation higher.
• The volume of retail sales fell.
• The annual number of new homes consented exceeded 40,000.

Fuel prices rise in the June 2026 quarter

Recent supply disruptions contributed to higher fuel prices in the June 2026 quarter.

Petrol prices rose 20.1 percent over the quarter, while diesel prices rose 47.7 percent, as measured by the consumers price index (CPI).

In the year ended June 2026, petrol prices were up 27.5 percent compared with the year ended June 2025. Diesel prices were up 71 percent.

Consumer inflation increases, driven by higher petrol prices

• The consumers price index increased 4.1 percent in the year ended June 2026. This followed a 3.1 percent increase in the year ended March 2026.
• Petrol was the largest upwards contributor to the annual inflation rate, up 27.5 percent. Diesel prices also increased in the year ended June 2026, up 71 percent.
• If petrol and diesel prices had not changed, the CPI would have risen 2.9 percent in the year ended June 2026.
• Business input prices rose 4.1 percent in the year ended June 2026, while business output prices increased 3.2 percent. Input prices are the prices paid by producers for goods and services. Output prices are the prices received by producers for goods and services.

“Higher petrol prices accounted for almost one-quarter of the 4.1 percent annual increase in the CPI, whereas diesel prices accounted for less than 8.0 percent,” Attewell said.

“New Zealand households spend about eight times more on petrol than on diesel, meaning petrol prices have a larger impact on the CPI than diesel prices.”

Retail sales fall

• The total volume of seasonally adjusted retail sales was $26 billion in the June 2026 quarter, down 0.5 percent compared with the March 2026 quarter.
• The total value of seasonally adjusted retail sales was $33 billion, up 0.9 percent ($301 million).
• Higher fuel prices drove a sharp rise in fuel retailing sales values in the June 2026 quarter. However, once the impact of price changes was removed, fuel retailing recorded the largest fall in sales volumes across the 15 industries measured.

Current account deficit narrows

• The seasonally adjusted current account deficit was $3.8 billion in the June 2026 quarter, compared with $4.4 billion in the March 2026 quarter. This was due mainly to a $712 million narrowing in the primary income deficit.
• The seasonally adjusted goods deficit widened by $416 million to $1.5 billion in the June 2026 quarter. Goods imports increased $1.8 billion to $24.1 billion, led by a rise in petroleum and petroleum products. Goods exports rose $1.4 billion to $22.6 billion.
• The seasonally adjusted services balance was a surplus of $183 million in the June 2026 quarter, compared with a deficit of $117 million in the previous quarter.

Construction activity increases, number of new homes consented exceeds 40,000

• Construction was up 2.7 percent in the June 2026 quarter, as measured in GDP. On an annual basis, construction was down 1.1 percent in the year ended June 2026, compared with the year ended June 2025.
• The number of new homes consented rose 10 percent in the June 2026 quarter, compared with the March 2026 quarter, after removing seasonal effects. Building consents data is a leading indicator of future building activity.
• There were 40,581 new homes consented in the year ended June 2026, up 19 percent compared with the year ended June 2025.

“This was the first time since 2023 that the annual number of new homes consented exceeded 40,000,” Attewell said.

Unemployment rate at 5.6 percent, underutilisation rate rises

• New Zealand’s seasonally adjusted unemployment rate was 5.6 percent in the June 2026 quarter, compared with 5.4 percent in both the March 2026 and December 2025 quarters.
• The seasonally adjusted underutilisation rate was 13.8 percent in the June 2026 quarter, up from 12.9 percent last quarter. There were 440,000 underutilised people in the June 2026 quarter, an increase of 31,000 on the previous quarter.
• The total number of underutilised people in the June 2026 quarter consisted of 234,000 women and 206,000 men.

“The underutilisation rate measures those people who would like to work more, including unemployed people, the potential labour force, and people who are underemployed,” Attewell said.

Data sources

Balance of payments and international investment position: June 2026 quarter has more information on New Zealand’s balance of payments and international investment position.

Building consents issued: June 2026 has more information about the number, floor area, and value of new homes, non-residential buildings, and alterations approved for construction.

Business price indexes: June 2026 quarter has more information on business input and output prices.

Consumers price index: June 2026 quarter has more information on consumer inflation.

Gross domestic product: June 2026 quarter has more information on the performance of New Zealand’s economy.

International trade: June 2026 quarter has more information on goods and services exports and imports.

Labour market statistics: June 2026 quarter has more information on unemployment, employment rates, demand for labour, and changes in wages and salaries.

Overseas merchandise trade: June 2026 has more information on imports and exports of merchandise goods between New Zealand and other countries.

Retail trade survey: June 2026 quarter has more information on the sales and stock of businesses that provide household and personal goods and services.

Selected price indexes: June 2026 has more information on monthly price changes for a selection of goods and services that New Zealand households purchase.