Prices
New Zealand inflation rate & the cost of living
The Consumer Price Index (CPI) tracks what New Zealand households pay, and its annual change is the country's headline inflation rate. When inflation runs ahead of wages, purchasing power falls, even if your pay packet grows.
Current inflation rate (annual CPI)
3.71%
vs previous quarter: −0.34 ptsAll-time average: 4.6%
Prices since
+30.0%
$100 of goods at the start of 2020 costs about $130 today.
Annual inflation rate, 2015–present
Consumer Price Index, year-on-year percentage change, quarterly
*Click on the indicator key to hide or show indicators
Source: Stats NZThe Real Economy (opens the full chart page)
What this means
- The CPI measures the change in prices of a fixed basket of goods and services. It does not measure the absolute cost of living, and it does not fall when inflation eases: it rises more slowly.
- Tradable inflation covers goods and services that compete internationally (food imports, fuel, electronics). Non-tradable inflation is domestic (rents, rates, local services) and tends to be stickier.
- The Reserve Bank targets 1–3% annual inflation. Above-target inflation usually brings higher interest rates, which flow through to mortgages and rents.
CPI, annual inflation, tradable and non-tradable inflation, and grocery prices are all live from Stats NZ. Grocery prices are the monthly weighted average prices Stats NZ collects for its Food Price Index.