New Zealand’s annual inflation jumps to 4.1% in June quarter, highest in two years

Statistics New Zealand reported that the Consumer Price Index rose 4.1% year‑on‑year in the June quarter, the strongest increase since mid‑2024. Petrol prices, up 27.5%, were the biggest single driver, followed by higher electricity, local rates and construction costs. The surge reflects global fuel market disruptions linked to the renewed US‑Iran conflict and pushes inflation above the Reserve Bank of New Zealand’s 1‑3% target band. The central bank has already lifted the Official Cash Rate to 2.50% and signalled that further hikes may be needed if price pressures spread. Economists from Westpac, ANZ and ASB forecast the annual rate between 3.9% and 4.1%, while the RBNZ expects the peak to be near 3.9%.