High rentals could push up inflation – BNZ

Supply is down and rents are up. (Image: A1)

Mon, 24 Jul 2023

Stubbornly high house rental levels remain a major spanner in efforts to reduce inflation, BNZ says.Rentals, which represent about 36% of the national housing stock, constitute about 10% of the consumer price index (CPI) basket. According to data on new tenancy rental levels supplied by the Ministry of Business, Innovation and Employment, national rent inflation is running at about 5.4% annually. There are regional differences, and since February 2020, rents have jumped by 40% in both Gisborne and Taranaki, 36% in Southland and 26% in...

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