What was New Zealand's Q2 2024 annual inflation rate, and how did it compare to forecasts and the RBNZ's target range?

New Zealand's annual inflation rate for the second quarter of 2024 was 4.1% year-on-year, which was above both economists' forecast of 4.0% and the Reserve Bank of New Zealand's (RBNZ) target range of 1% to 3%. The consumer price index (CPI) rose 1.5% quarter-on-quarter — also exceeding the Reuters-poll expectation of a 1.4% rise. This persistent overshoot of the RBNZ's inflation target underscores ongoing pricing pressures in the economy, prompting the central bank to raise its cash rate to 2.50% — its first increase in three years — and signal further monetary tightening to restore price stability as the economy rebuilds.

Which specific fuel prices contributed most significantly to New Zealand's Q2 2024 inflation, and what would the annual CPI have been without their impact?

Petrol and diesel prices were the largest contributors to New Zealand's Q2 2024 inflation, with petrol rising 27.5% and diesel surging 71.1% year-on-year. According to Statistics New Zealand, if petrol and diesel prices had remained unchanged over the 12 months to June 30, the annual CPI increase would have been 2.9% — well within the RBNZ's 1%–3% target band. This highlights how volatile global energy prices, linked to geopolitical factors such as the Middle East war, are distorting headline inflation and complicating the central bank’s policy calibration.

New Zealand Q2 Inflation at 4.1% y/y, Above Forecast

Jul 20, 2026

New Zealand's annual inflation accelerated to 4.1% in Q2, exceeding forecasts and driven by sharp rises in petrol and diesel prices. The Reserve Bank raised its cash rate to 2.50% and signaled further tightening to bring inflation back to target.

reuters

2026-05-04

Australian Household Spending Rises at Fastest Pace in Two Years

2026-07-20

New Zealand Q2 Inflation at 4.1% y/y, Above Forecast

New Zealand Q2 Inflation at 4.1% y/y, Above Forecast

FAQ