Inflation rose by 3.1%, marking the highest annual rate since the June 2024 quarter’s 3.3%.
The Reserve Bank of New Zealand targets an annual inflation rate of 1% to 3%.
According to official figures released by Stats NZ, the rise in the 12 months to the December quarter followed a 3.0% increase in the 12 months to the September 2025 quarter.
“While the annual inflation rate has slowed considerably since its most recent peak of 7.3% in the June 2022 quarter, it has increased each quarter since the December 2024 quarter, when it was 2.2%,” Stats NZ prices and deflators spokesperson Nicola Growden said.
Electricity made the largest contribution to annual inflation, rising 12.2% and accounting for 10.3% of the 3.1% yearly increase, according to Stats NZ.
Local authority rates and payments rose 8.8% in the December 2025 quarter, accounting for 8.7% of the 3.1% increase.
Rent climbed 1.9%, contributing 6.9%.
Meanwhile, meat and poultry rose 8.2%, milk, cheese, and eggs climbed 9.8%, and overseas accommodation climbed 9.1%.
Telecommunications services rose 7.0% over the year.
Some prices declined, including pharmaceutical products, audio-visual equipment, games, toys, and hobbies.