New Zealand's annual inflation rate held firm at 3.1% for the March quarter, according to the latest consumer price index data released by Stats NZ.
The figure matches the previous annual increase recorded in December 2025, keeping inflation slightly above the Reserve Bank’s preferred 1% to 3% target band.
The primary driver of this persistent pressure was a sharp 12.5% jump in electricity prices, which spokesperson Nicola Growden noted has been the top upward contributor for three consecutive quarters.
Other annual increases were seen in local authority rates, which climbed 8.8%, and meat and poultry prices, rising 8.6%.
The rental market provided some relief, with a modest 1.2% increase marking the slowest annual growth for the sector in 16 years.
On a quarterly basis, the CPI rose 0.9%, largely propelled by a 3.5% spike in petrol prices despite mid-quarter dips.
Pharmaceutical products also surged 17.7% this quarter, a result of the prescription subsidy scheme resetting in February, which forced many households back into co-payments.
Collectively, petrol and pharmaceuticals accounted for over a quarter of the quarterly rise.
While New Zealanders faced higher costs for confectionery and snacks, international travel offered a rare reprieve; airfares to Europe and the Pacific Islands fell by 7%, providing a much-needed cooling effect on an otherwise stubborn inflationary landscape.