FX.co ★ New Zealand Quarterly Inflation Rise to 0.9% in Q1

In the first quarter of 2025, New Zealand's Consumer Price Index (CPI) rose to 0.9%, a marked increase from the 0.5% rise observed in the preceding December 2024 quarter. This surge represents the highest level since September 2023 and exceeded market predictions of a 0.7% increase. The most significant factor contributing to this quarterly escalation was the rise in petrol prices, which jumped by 4.6% and accounted for 17% of the total 0.9% increase. Additionally, prices for tertiary and post-secondary education leapt by 22.6% in the March 2025 quarter, adding 11% to the overall CPI growth. This rise followed the conclusion of the first-year Fees Free program at the end of 2024, which was succeeded by the commencement of a final-year Fees Free scheme on January 1, 2025. Students who had previously benefited from the first-year Fees Free initiative are not eligible for the final-year program, thereby resulting in a greater number of students absorbing the full financial burden of their studies in 2025. On an annual basis, consumer prices increased by 2.5% in the March quarter, up from the 2.2% rise recorded in the previous period.