NZ’s inflation eases in Q3 ’24

New Zealand’s consumer price index (CPI) rose 0.6 per cent in third quarter of 2024 compared to the previous quarter, with annual inflation dropping from 3.3 per cent to 2.2 per cent, according to Stats NZ report on Wednesday.

This marks the first time since March 2021 that annual inflation has fallen within the Reserve Bank of New Zealand’s (RBNZ) target range of 1 to 3 per cent. While prices are still increasing, the pace of growth has slowed significantly.

Housing costs continued to be a major driver of inflation, with rents rising 4.5 per cent over the year. This accounted for nearly a fifth of the overall increase in the CPI, the report showed.

Local authority rates and payments also contributed significantly to inflation, increasing 12.2 per cent in the year to September. Cigarette and tobacco prices rose 10 per cent, primarily due to a government-imposed excise tax increase.

However, falling petrol prices and lower vegetable prices helped to offset some of the inflationary pressures. Petrol prices declined eight per cent, while vegetable prices dropped by 17.9 per cent after reaching record highs last year.

Attribution: Stats NZ report

Subediting: M. S. Salama