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 your money to lose value. It's measured by the Consumer Price Index (CPI) and is typically caused by demand-pull (strong consumer demand) or cost-pull (higher production costs) factors.

High inflation can reduce investment values and lead to higher interest rates from the Reserve Bank of New Zealand, which aims for a 1-3% target. Annual inflation was 2.2% in December 2024 and is forecast to return 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