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New Zealand annual inflation accelerates, supporting expectations of rate hikes
- On Friday, Stats NZ said the consumer price index rose 3.1% in the 12 months to December 2025, marking the fourth consecutive increase in annual inflation.
- With electricity up 12.2%, the biggest contributor, higher food, fuel, international airfares, and telecommunications also pushed inflation, with meat and poultry up 8.2% and milk, cheese and eggs up 9.8%.
- The CPI rose 0.6% in the three months to December, prompting ANZ Bank to revise its OCR forecast to December and markets to price in rate hikes, lifting the New Zealand dollar to US59.24c.
- Because the headline topped the RBNZ's 2.7% forecast, forecasters now flag a higher chance of earlier OCR increases, with some models projecting a 25bp hike in December and follow-ups toward a neutral 3%, while the MPC retains scope to focus on core inflation.
- Amid criticism, opposition figures warned `it’s not good enough,' while Nicola Willis said the Reserve Bank is responsible for keeping inflation in range and the government is addressing drivers.
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12 Articles
Coverage Details
Total News Sources12
Leaning Left2Leaning Right1Center4Last UpdatedBias Distribution57% Center
Bias Distribution
- 57% of the sources are Center
57% Center
L 29%
C 57%
14%
Factuality
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