emirates7 - Inflation in New Zealand has climbed to its highest level in a year, fueled by increasing costs for rent, local government rates, electricity, and food. However, the rate still falls within the Reserve Bank’s target range and is not expected to hinder upcoming interest rate cuts.

Stats NZ reported that the Consumer Price Index (CPI) rose by 0.5 percent in the June quarter, pushing the annual inflation rate to 2.7 percent—up from 2.5 percent in the March quarter and marking the highest level since June of the previous year.

“While inflation has ticked up compared to the March 2025 quarter, it remains within the Reserve Bank’s 1 to 3 percent target range for the fourth quarter in a row,” said Nicola Growden, Senior Manager of Prices at Stats NZ.

The main contributor to inflation continues to be non-tradable domestic prices, which rose 0.7 percent during the quarter and 3.7 percent year-on-year—the slowest annual growth in four years.