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Consumer price indexes

Inflation Remains Within Target Range, Says Acting Finance Minister Chris Bishop

Strategic Insights

— 2 min read

Acting Finance Minister Chris Bishop has welcomed the latest inflation figures, which show that annual Consumers Price Index (CPI) inflation has remained within the Reserve Bank's target range of 1 to 3 per cent, despite expectations of a peak. According to Stats NZ, the annual CPI inflation rose from 2.7 per cent in the year to June to 3 per cent in the year to September 2025. This is a slight increase, but remains within the target range. The Minister emphasized the importance of continued discipline by the Government to prevent inflation from returning to its peak of 7.3 per cent under the previous government in 2022.

Key Takeaways:

  • The annual Consumers Price Index (CPI) inflation rose from 2.7 per cent in the year to June to 3 per cent in the year to September 2025.
  • The CPI inflation remains within the Reserve Bank's target range of 1 to 3 per cent.
  • Expectations are that the inflation rate will decline towards 2 per cent in the first half of next year, easing pressure on households and businesses.
  • The top contributors to the annual increase included electricity (up 11.3 per cent) and local authority rates and payments (up 8.8 per cent).
  • Domestic inflation continues to fall, down from 3.7 per cent in the June quarter to 3.5 per cent, the lowest rate since mid-2021.
  • The inflation rate has fallen from a high of 6.8 per cent in the March quarter of 2023.
  • Stats NZ highlighted the importance of increasing electricity supply and competition, and the significant impact of local government rates on New Zealanders' wallets.
  • Minister Chris Bishop emphasized the need for continued discipline by the Government to prevent inflation from returning to its peak under the previous government in 2022.

Statistics:

  • Annual CPI inflation: 2.7 per cent (year to June) to 3 per cent (year to September 2025)
  • Reserve Bank's target range: 1 to 3 per cent
  • Inflation rate: expected to decline to 2 per cent in the first half of next year
  • Top contributors to annual increase:

+ Electricity: up 11.3 per cent

+ Local authority rates and payments: up 8.8 per cent

  • Domestic inflation: down from 3.7 per cent in the June quarter to 3.5 per cent
  • Peak inflation rate under previous government: 7.3 per cent (2022)
  • Lowest inflation rate since mid-2021: 3.5 per cent (current rate)

Sources:

  • Stats NZ
  • Reserve Bank of New Zealand
  • Hon Chris Bishop, Acting Minister of Finance

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