New Zealand’s annual inflation rate eased to 3.7% in the third quarter of 2026 from 4.1% in the previous quarter, slightly below expectations of 3.8% but remaining above the Reserve Bank of New Zealand’s 1–3% target range. Petrol was the largest upward contributor to annual inflation, rising 19.1% amid higher international oil and fuel prices linked to conflicts in the Middle East. The cost of constructing new housing increased 3.2%, driven by higher material, subcontractor, labour and fuel costs. Electricity prices rose 9.3%, international airfares increased 12.5%, and local authority rates and payments climbed 6.2%. The latter are measured annually in the September quarter and have been a major driver of inflation in recent years. On a quarterly basis, the Consumer Price Index (CPI) rose 0.7%, slowing from a 1.5% increase in the second quarter.