New Zealand inflation slows below forecasts
New Zealand's annual consumer inflation eased from 4.1% to 3.7% in the third quarter of 2026, below the 3.8% market forecast.
Official data released on October 22 showed that consumer prices increased 0.7% quarter-on-quarter, compared with expectations of 0.8%. Petrol prices rose 19.1% annually but declined 6.5% during the quarter.
The softer inflation reading weighed slightly on the New Zealand dollar, although annual inflation remains above the Reserve Bank of New Zealand's 1–3% target range. The policy rate currently stands at 2.75%, and markets assign approximately a 98% probability to another increase at the October 28 meeting. Renewed energy price pressures could push inflation higher in the final quarter.
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