New Zealand's consumer price inflation unexpectedly remained persistent in the first quarter of 2026, with the annual Consumer Price Index (CPI) printing 3.1%, according to data released by Stats NZ on Tuesday. The reading matched the prior quarter and exceeded median expectations of 2.9%.
The 3.1% annual pace sits above the Reserve Bank of New Zealand's stated annual target range of 1% to 3%. Stats NZ identified electricity and petrol as principal contributors to the stronger-than-forecast outcome, while food prices also continued to exert upward pressure.
On a quarterly basis, CPI rose 0.9%, accelerating from a 0.6% increase in the previous quarter and topping market expectations of a 0.8% gain. That faster quarterly pace underscores momentum in consumer prices over the three-month period.
Energy costs were particularly influential. Electricity prices were reported as the largest single driver of the CPI increase in the quarter. Petrol jumped 3.5% across the quarter, with most of that increase occurring in March. Stats NZ attributed the March spike to supply disruptions tied to the U.S.-Israel war on Iran.
When petrol is removed from the calculations, quarterly CPI still rose 0.8%, a sign that underlying inflation remained elevated beyond the direct impact of fuel. The uplift in food prices also helped sustain inflation at a level above the central bank's target band.
In sum, the Stats NZ release shows inflation in New Zealand remaining above the RBNZ's 1% to 3% objective at 3.1% year-on-year in Q1 2026, supported chiefly by electricity and petrol cost increases and accompanied by continued food price pressures. Quarterly movement accelerated to 0.9%, while core measures excluding petrol registered 0.8% for the quarter.