WELLINGTON, Oct. 22 (Xinhua) -- New Zealand's annual inflation eased to 3.7 percent in the September 2026 quarter from 4.1 percent in the previous quarter, still remaining above the central bank's target band of 1 to 3 percent, official data showed on Thursday.
Petrol was the largest contributor to annual inflation, with prices rising 19.1 percent from a year earlier. If petrol prices had remained unchanged, annual inflation would have been 3.2 percent in the period, according to a statement from Stats NZ, the country's statistics agency.
The cost of constructing new housing rose 3.2 percent over the year, with higher material, subcontractor, labor and fuel costs contributing to the increase, Stats NZ prices and deflators spokesperson Nicola Growden said in the statement.
Other major contributors to annual inflation included electricity, up 9.3 percent, international airfares, up 12.5 percent, and local authority rates and payments, up 6.2 percent, statistics showed.
More than 85 percent of items in the consumer price index (CPI) basket increased in price over the year, while about 13 percent fell in price, the lowest proportion since the December 2023 quarter, according to Stats NZ.
Quarterly, the CPI rose 0.7 percent in the September quarter from the previous quarter, with international airfares the largest upward contributor, up 14.3 percent, mainly due to higher fares to Europe and Asia, the agency said.
Petrol prices fell 6.5 percent over the quarter, after rising 20.1 percent in the June 2026 quarter, it said.
Finance Minister Nicola Willis told reporters that Thursday's inflation figures were encouraging, but overseas events and the international oil shock continued to pose pressures. ■
