Why inflation is up again and what’s really driving it

Inflation has hit 4.1% - the highest level in more than two years.

Economists had expected it surge to somewhere between 3.9 and 4.1 percent. 

However, the end result is well below some previous forecasts, which reached 4.9%. 

If we ignored the surging fuel prices, Westpac economists reckon inflation would be about 2.8 percent. 

So what does this actually mean for the cost of living, for interest rates, and for the story of the New Zealand economy in 2026? 

Today on The Front Page, NZ Herald business editor at large Liam Dann is with us to unpack how we got to 4.1%, what’s really driving the numbers, and what comes next for households, businesses, and the path back to stable prices.

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You can read more about this and other stories in the New Zealand Herald, online at nzherald.co.nz, or tune in to news bulletins across the NZME network.

Host: Chelsea Daniels
Editor/Producer: Richard Martin
Producer: Jane Yee

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