New Zealand’s annual inflation reached 3.7 per cent in September, mainly driven by high fuel prices.

Figures released by Stats NZ show that the consumer price index (CPI) rose 3.7 per cent in the 12 months to September.

The increase follows a 4.1 per cent uplift in the 12 months to June. The Reserve Bank of New Zealand’s target band for the annual inflation rate is 1 to 3 per cent.

Petrol (91 and 95/98 octane) was the largest upward contributor to the annual inflation rate, up 19.1 per cent and contributing 17.5 per cent to the annual inflation rate.

If petrol prices had not changed, the CPI would have risen 3.2 per cent during the period.

“Petrol prices fell in the September 2026 quarter, compared with the June 2026 quarter,” Stat NZ prices and deflators spokesperson Nicola Growden said.

“However, petrol prices remained higher than in the September 2025 quarter.”

The cost of constructing new housing also increased by 3.2 per cent, contributing 7.9 per cent to the annual inflation rate.

Other contributors to the annual CPI increase were electricity, international airfares, and local authority rates and payments.

Meanwhile, olive oil and butter, vegetables, and audio-visual equipment all fell in price over the year. 

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