Producer input prices in New Zealand fell by 0.5% quarter-on-quarter in the three months to December 2025, reversing from a 0.2% gain in the previous quarter and significantly missing market expectations of a 0.5% rise. The decline was primarily driven by a sharp 24.4% plunge in electricity and gas supply and a 6.9% drop in dairy product manufacturing, which outweighed a 6.0% rise in meat product costs. This unexpected contraction signals a rapid easing of upstream pipeline pressures, defying forecasts for continued inflation.