FX.co ★ New Zealand Quarterly Inflation Below Forecasts in Q2

In the quarter ending June 2025, New Zealand's Consumer Price Index (CPI) experienced a 0.5% increase compared to the previous quarter's 0.9% rise. This figure was below market predictions of a 0.6% increase. Significant contributors to this quarterly growth included cultural services, which soared by 9.5%, primarily driven by rising costs for TV streaming subscriptions. This sector represented 25.8% of the total CPI growth. Electricity prices increased by 4.9%, accounting for 24.7% of the rise, while vegetable prices shot up by 10%, contributing 20.4% to the overall increase. These hikes were somewhat balanced by reductions in fuel and accommodation expenses. Specifically, petrol prices dropped by 4.8%, applying a -31.7% downward pressure on the index, and domestic accommodation services fell by 9.2%, contributing a -11.1% effect. On an annual scale, the CPI advanced by 2.7% in the June quarter, modestly surpassing the previous period's growth of 2.5%.