New data from Stats NZ shows New Zealand’s annual inflation rate increased to 2.7% in the June quarter, up from 2.5%.
This movement is attributed mainly to higher imported costs, while domestic inflationary forces are gradually easing.
Core inflation, which excludes volatile food and fuel prices, also edged up to 2.7% over the year.
The proportion of goods and services experiencing price increases has remained steady at 54%.
However, more items saw price declines this quarter, rising from 30% to 35%.
Additionally, a larger share of products either remained unchanged or increased by less than 3% over the past year, indicating a moderation in overall price growth.
Imported inflation, which had previously helped to contain headline inflation, is now on the rise.
Annual inflation for tradable goods increased from 0.3% to 1.2%.
Food prices, in particular, rose by 4.2% and accounted for nearly 29% of the overall inflation rate.
Domestic inflation has continued to slow, with non-tradable inflation dropping below 4% for the first time in four years, now sitting at 3.7%.
Despite this downward trend, certain administered costs remain elevated.
Insurance premiums have increased by 6% year-over-year, while council rates have climbed by 12.2%.
Households are also contending with higher electricity prices, which are up 9.1% from the previous year.
When housing-related inflation is excluded, domestic inflation stands at 3.5%, the lowest since late 2021.
Kiwibank suggested that excess economic capacity should help ease domestic inflation further, but the pace of this decline is being influenced by factors outside the Reserve Bank of New Zealand’s (RBNZ) direct control.
Looking ahead, inflation is projected to rise in the coming quarter before returning to a downward trajectory.
The RBNZ is expected to maintain its focus on core inflation trends, which have been declining since their peak at the end of 2022.
Current forecasts indicate that inflation could fall to 1.8% next year, with monetary policy settings remaining supportive.
Global insolvency rates are expected to rise by 6% in 2025 and by an additional 3% in 2026, according to Allianz Trade’s latest Global Insolvency Report.
This continues a multi-year trend linked to ongoing economic headwinds, including higher interest rates and the gradual withdrawal of pandemic-era support measures.
In the Asia-Pacific region, insolvency levels remain high in markets such as Singapore, Australia, and New Zealand.
Some areas may see a slowdown in insolvency growth, but others, including Hong Kong and Taiwan, are expected to face ongoing challenges.
China is projected to see a 7% increase in business failures in 2025, rising to 10% in 2026, with construction and export-dependent sectors under particular strain.
Despite inflation and insolvency risks, Hong Kong and New Zealand continue to rank among the most accessible business environments in the region.
Both are listed in the top 10 globally for ease of doing business, supported by streamlined tax policies and regulatory frameworks that encourage foreign investment.
Conversely, Mainland China has moved into the top 10 most complex jurisdictions for business, with frequent regulatory changes and regional differences adding to operational challenges.
India has implemented compliance reforms aimed at improving transparency and governance, increasing short-term requirements but expected to yield longer-term efficiencies.
Japan and Singapore have also made incremental improvements, focusing on digital infrastructure and trade connectivity.
