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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.
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.
Electricity prices surged 11.3% year-on-year, the largest rise since the late 1980s.
Despite the uptick, underlying inflation held near 2.5%, supporting expectations of a forthcoming interest rate cut.
Food inflation eased slightly to 4.1%, and monthly food prices dropped for the first time since February.
Economists suggest inflation may have peaked, with global commodity declines expected to ease domestic costs.
The Reserve Bank is likely to cut the official cash rate in November, possibly below 2.25%.
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.
La inflación de Nueva Zelanda subió al 3,0% en septiembre, impulsada por mayores costos de electricidad, alquiler y alimentos, pero la inflación subyacente se mantuvo cerca del 2,5%, lo que indica un posible recorte de tasas en noviembre.