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flag New Zealand's inflation rose to 3.0% in September, driven by higher electricity, rent, and food costs, but underlying inflation held near 2.5%, signaling a potential rate cut in November.

flag Inflation in New Zealand rose to 3.0% annually in the September quarter, the highest since June 2024, driven by sharp increases in electricity, housing rates, rent, and food prices. flag Electricity prices surged 11.3% year-on-year, the largest rise since the late 1980s. flag Despite the uptick, underlying inflation held near 2.5%, supporting expectations of a forthcoming interest rate cut. flag Food inflation eased slightly to 4.1%, and monthly food prices dropped for the first time since February. flag Economists suggest inflation may have peaked, with global commodity declines expected to ease domestic costs. flag The Reserve Bank is likely to cut the official cash rate in November, possibly below 2.25%. flag Prime Minister Christopher Luxon highlighted that current inflation and interest rates are lower than under the previous government, while household budgets remain strained, with half of New Zealanders cutting fresh produce purchases.

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