from Radio NZ
The 12.2 percent rise in electricity prices was the single biggest contributor to the annual increase, followed by an 8.8 percent rise in rates, and then rentals rising 1.9 percent for the year.
- Consumer prices was up 0.6% in December quarter
- The annual inflation rate was at 3.1% from 3.0%, the highest since June 2024
- Quarterly growth driven by fuel, airfares and telco services, offsetting cheaper food
- Higher food, electricity, rates and rents have driven an annual increase
- Underlying inflation remains about 2.5%, which backs the RBNZ keeping rates steady.
Inflation has edged higher on the back of higher fuel, travel, and telecommunication costs backing the view the Reserve Bank will hold interest rates steady for the medium term at least.
While Councils up and down NZ are resisting rates capping, ordinary New Zealanders are paying through massive cost of living pressures caused by Council Rates. Councils’ inability to control their own spending will also mean that the Reserve Bank will keep interest rates higher than they would otherwise need to be – so households are going to get hit twice. —Eds