New Zealand CPI climbs to 4.1% in Q2 2026

New Zealand’s consumer price index rose 1.5 % quarter‑on‑quarter in the June 2026 quarter, taking annual inflation to 4.1 %—up from 3.1 % a year earlier. The surge was driven almost entirely by fuel costs: petrol was 27.5 % higher year‑on‑year and accounted for roughly a quarter of the annual increase, while diesel jumped 71 % and together with petrol made up almost two‑thirds of the quarterly rise. Excluding petrol and diesel, the CPI would have risen only 2.9 % over the year, keeping inflation near the Reserve Bank of New Zealand’s 1‑3 % target range. RBNZ Governor Anna Breman had projected inflation at 3.9 % and the bank raised the official cash rate to 2.5 % in early June, signalling that further hikes are likely if energy price pressures spill over into broader price indices. Statistics New Zealand spokesperson Nicola Growden noted that “higher petrol prices accounted for almost a quarter of the 4.1 % annual increase.” The data also showed electricity prices up 12 % year‑on‑year and local‑authority rates rising 8.8 %, adding to household cost pressures.