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, causing money to lose value. Measured by the Consumer Price Index (CPI), it reduces purchasing power, can erode investment returns, and often leads to higher interest rates from the Reserve Bank.

The main causes are demand-pull (strong consumer demand) and cost-pull (higher production costs). The Reserve Bank aims for a 1-3% target. Annual inflation was 2.2% in December 2024, with forecasts showing it returning to the 2% target 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