New Zealand's Inflation Rate Hits 2.5 Percent in March 2025

(MENAFN) According to data released by Stats NZ on Thursday, New Zealand's annual inflation rate increased to 2.5% in March 2025, up from 2.2% in December 2024. This marks the third consecutive quarter that inflation has remained within the Reserve Bank's target range of 1-3%, following a period of exceeding this range from June 2021 to June 2024.

The primary contributors to the annual inflation increase were housing-related costs. Rent prices saw a rise of 3.7%, contributing 14% to the overall inflation rate, although this represents the lowest annual growth since 2021. Additionally, local authority rates and payments surged by 12.2%, also accounting for 14% of the inflation increase, while construction costs rose by 1.9%, contributing 7% to the total inflation figure.

On a positive note, falling petrol prices provided some relief, with a year-on-year decrease of 2.8%, partly attributed to a 5.8% drop in Auckland following the conclusion of the regional fuel tax on June 30, 2024.

Stats NZ highlighted that only 24% of the Consumer Price Index (CPI) basket experienced price increases of 5% or more, the lowest proportion in four years, although still above pre-pandemic levels. On a quarterly basis, the CPI rose by 0.9%, primarily driven by increased education costs following the end of the first-year Fees Free scheme in 2024, as noted by Stats NZ spokesperson Nicola Growden.

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