The latest consumer price index (CPI) has been released, with prices rising faster than the Reserve Bank of New Zealand’s (RBNZ) target.

Stats NZ released the figures, which showed a 3.1 per cent increase in the CPI, in the 12 months to December 2025. RBNZ’s target range is 1-3 per cent.

It is the highest annual rate since the June 2024 quarter, which stood at 3.3 per cent.

“While the annual inflation rate has slowed considerably since its most recent peak of 7.3 per cent in the June 2022 quarter, it has increased each quarter since the December 2024 quarter, when it was 2.2 per cent,” prices and deflators spokesperson Nicola Growden said.

Telecommunications service prices rose by 7 per cent. Meat and poultry rose by 8.2 per cent, and milk, cheese, and eggs rose by 9.8 per cent.

“More than 80 per cent of the CPI basket increased in price over the past year – the highest proportion of increases recorded in 18 months,” Growden added. 

“Over half of the CPI basket increased in price by 3 per cent or less.”

December was 0.6 per cent up on the previous quarter. However, vegetable prices falling by 16.5 per cent helped to limit the damage.

“Lower prices for seasonal vegetables like tomatoes, cucumbers, capsicums, lettuce, and broccoli contributed to the fall in vegetable prices,” Growden said.