New Zealand Inflation Rises 3.1% as Petrol and Electricity Push Prices Higher

New Zealand’s inflation rose in the March 2026 quarter, with the consumer price index increasing 0.9% for the quarter and 3.1% annually. The rise reflects ongoing price pressures after global disruptions, with higher costs recorded for petrol, pharmaceutical products, and snacks. Petrol climbed 3.5%, pharmaceuticals surged 17.7%, and confectionery, nuts, and snacks rose 6.2%, driving much of the quarterly increase. However, some relief came from falling international air transport costs, down 7.0%, and cheaper overseas accommodation, which dropped 4.0%. Over the past year, electricity prices jumped 12.5%, while local authority rates rose 8.8% and meat and poultry increased 8.6%. Tradeable inflation reached 2.5%, while non-tradeable inflation was higher at 3.5%, showing stronger domestic pressure. Meanwhile, prices fell for audio-visual equipment and real estate services, helping to offset overall inflation growth.