Inflation to rise in June quarter, August rate cut still on cards: economists

Inflation is expected to rise in the June quarter. (Image: Getty)

Mon, 21 Jul 2025

Annual inflation will nudge ahead in the June year, testing the upper limit of the central bank’s 1-3% target range on the back of food price hikes, but it won't forestall an expected August rate cut, economists say.Economists at ASB, Kiwibank and Westpac each expected the consumers price index (CPI) in the 12 months to June 30 to show inflation of 2.8%. Those at ANZ and BNZ each plumped for a 2.9% rise. The data is due on Monday at 10.45am. On a quarterly basis, ASB and Westpac sought 0.6% rises, while ANZ and BNZ anticipat...

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Food prices rise 4.6% in the year to June

New stats show food prices rose 4.6% in the year to June – the largest rate of increase since late 2023.That was up from a 4.4% increase in the year to May, Stats New Zealand’s latest selected price indexes show.Rising prices for fruit and vegetables in June have contributed to a...

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