By James Glynn
SYDNEY--New Zealand consumer prices rose at a faster pace than expected in the fourth quarter, consistent with broad signs that an economic recovery is gathering momentum.
The consumer price index increased 3.1% on year in the fourth quarter, slightly more than the 3.0% rise expected by economists, StatsNZ said Friday.
Inflation is now above the Reserve Bank of New Zealand's 1% to 3% target band, and stands at its highest rate since mid-2024.
While the annual inflation rate has slowed considerably since its most recent peak of 7.3% in mid-2022, it has increased each quarter since the end of 2024, when it was 2.2%, the data showed.
The inflation numbers are consistent with signs of a recovery in the economy over recent months, and raises the prospect that after a lengthy period of interest rate cuts, the RBNZ will have to turn its mind to raising interest rates later this year.
The largest contributors to the annual inflation rate were in the housing and household utilities group, the data showed.
More than 80% of the CPI basket increased in price over the past year - the highest proportion of increases recorded in 18 months.
Write to James Glynn at james.glynn@wsj.com
(END) Dow Jones Newswires
01-22-26 1741ET
