Buying guide

What is inflation in NZ

The New Zealand economy has been struggling with inflation - find out what inflation is and what it means for you.

Ben Tutty
Last updated: 29 August 2025 | 3 min read
AI

AI summary

Inflation is a rise in average prices, reducing your money's buying power. It's measured by the Consumer Price Index (CPI) and is caused by either strong consumer demand (demand-pull) or increased production costs (cost-pull).

High inflation can devalue investments and lead to higher interest rates as the Reserve Bank of New Zealand works to keep it within its 1-3% target range. Forecasts suggest inflation will return to the 2% target midpoint by mid-2026.

What is inflation anyway?

You may notice inflation everywhere - espcially at the supermarket.

How does inflation affect us all?

What causes inflation?

What was inflation in 2024 NZ?

Inflation means your money may not go as far as it used to.

Inflation forecast for 2025/2026 NZ

Author

Ben Tutty Ben Tutty
Content Writer