This article has been translated from English to Gen Z Slang.
Yo fam, check this out! New Zealand’s consumer price index just pulled up with a 2.7% annual glow-up in the June 2025 quarter. 📈 That's the most it's flexed in a year, but it's still a smidge below what the haters— I mean, the market—expected, according to Stats NZ.
Quarterly, we’re up 0.5%, which is totes chill compared to the 0.9% spike last quarter. 😅 So, a little sigh of relief for the big wigs stressing over price hikes.
Key Vibes
- Annual inflation hit 2.7%, which is up from 2.5% in Q1 but didn’t quite make it to the 2.8-2.9% forecast the experts were banking on
- Quarterly CPI is at a 0.5% rise, cooling off from the previous quarter’s spicy 0.9%
- Non-tradeable inflation slowed to 3.7% annually, the slowest in four years. Talk about a chill pill on domestic price vibes! 🧊
- Tradeable inflation's chill at 1.2% annually, showing international price scenes are kinda weak sauce
- Cultural services were the main hype for the quarter, bumping up 9.5% thanks to your fave streaming subs taking the stage 🎥
- Petrol prices kept it real, dropping 8.0% annually and putting a hefty -69.1% on tradeable inflation. 🛢️
The real MVP in the annual inflation game was your local authority rates and payments, which soared 12.2% and took up 13% of that 2.7% rise. 📊 But hey, the decline in petrol prices—falling 8.0%—helped keep things in check.
Non-tradeable inflation, which is all about homegrown demand and supply, slowed to 3.7% annually, hitting the brakes big time compared to earlier cycles. 🚦
Link to the official NZ Q2 2025 CPI
Only 55% of the CPI squad recorded quarterly price boosts—the lowest since COVID-19 times in June 2020. More mind-blowingly, 36% had prices dipping, the biggest fall since way back in 2014! 😲
Market Reactions
NZ Dollar vs. Major Currencies: 5-min Realness
Overlay of NZD vs. Major Currencies Chart by TradingView
The Kiwi dollar took a bit of an L 🤦♂️ against major currency players after the inflation deets dropped. It slipped 0.25% versus the US dollar, sitting at about 59.45 cents. It also had a rough time with the Japanese yen (-0.38%) and the Canadian dollar (-0.29%).
Traders are vibin’ that the softer readings give the central bank room to slash the Official Cash Rate from its current 3.25%. They’re all about dialing back if medium-term inflation keeps serving low-key vibes. 🔮💸
