New Zealand's annual consumer inflation increased by 3.7% in the September quarter, down from a 4.1% increase in the 12 months to the June quarter, data from Stats NZ showed Thursday.
The consensus forecast was for an increase of 3.8%, according to Trading Economics.
Petrol was the biggest driver of the annual inflation rate, rising over 19%, per the report. The Consumer Price Index (CPI) would have risen 3.2% in the 12 months to the September quarter if petrol prices had remained unchanged.
Petrol prices declined in the September quarter compared with the June quarter but remained higher than in the September 2025 quarter, said Nicola Growden, prices and deflators spokesperson.
Other key drivers of annual inflation included electricity, which rose 9.3%, international airfares, which increased nearly 13%, and local authority rates and payments, which rose 6.2%.
On a quarter-on-quarter basis, inflation was up 0.7% in the September quarter after a 1.5% gain in the June quarter.
International airfares, which rose over 14%, were the main contributor to the quarterly inflation rate, while lower petrol prices, down 6.5%, provided the biggest downward contribution.
"Petrol prices fell 6.5% in the September quarter after rising 20.1% in the June quarter," Growden added.
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