Annual inflation in New Zealand accelerated to 4.1% in Q2 2026, from 3.1% in Q1, and was above forecasts of 4.0%, surpassing the RBNZ’s 1–3% target range, marking the highest rate since Q4 2023. The largest contributor was the transport group, where prices jumped 10.6% (vs 3.3% in Q1), mainly driven by petrol (up 27.5%) and other vehicle fuels and lubricants (up 71.0%). The second-largest contributor was the housing and household utilities group, where prices rose 3.6% (vs 3.4% in Q1), with electricity prices rising 12.0%. Meanwhile, faster inflation was also seen in alcoholic beverages and tobacco (2.8% vs 2.3%), clothing (2.5% vs. 1.3%), household contents (0.3% vs 0.0%), and communication (6.8% vs 4.6%), while inflation moderated for food (2.8% vs 4.0%), health (4.0% vs 4.1%), and miscellaneous goods and services (1.0% vs 2.2%). Quarterly, the CPI rose 1.5% in Q2, accelerating from a 0.9% increase in Q1, above estimates of 1.4% and marking the highest level since Q3 2023.