New Zealand's inflation rate held steady at 3.1% in the year to March 2026, according to the latest numbers released by Stats NZ.
The Reserve Bank of New Zealand's target band for inflation is between one and three percent.
Electricity prices, which were up 12.5%, contributed the most to the annual inflation rate.
Stats NZ prices and deflators spokesperson Nicola Growden said the higher electricity prices accounted for more than a tenth of the 3.1% increase in the Consumer Price Index.
"This was the third quarter in a row that electricity was the largest upwards factor to the annual inflation rate."
Concerns about inflation have risen on the back of the Iran war and its impact on the price of fuel.
However, the data recorded by Stats NZ only included the impact of the very start of the US and Israel's war on Iran, meaning the wider affect of the fuel price increase had not been documented.
Stats NZ the CPI had rose 0.9% in the March 2026 quarter, of which the largest contributer was higher petrol prices, which were up 3.5%.
“Petrol is the third-largest expense item for New Zealand households after rent and construction,” Growden said.
Prices for pharmaceutical products also increased in the March 2026 quarter – up 17.7%, which was driven by an increase in prescription charges.
Stats NZ said the prescription count for the prescription subsidy scheme reset on February 1, which meant households who had previously exceeded the 20-prescription threshold, and were receiving free prescriptions, now had to pay the prescription co-payment.
Petrol and pharmaceutical accounted for more than a quarter of the 0.9% quarterly CPI increase.
Stats NZ said other large contributors to the quarterly CPI increase were confectionery, nuts, and snacks; fruit; and electricity.
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