New Zealand's annual consumer inflation accelerated in the second quarter but was below economists' forecasts, leading markets to narrow the odds on a rate cut next month given weakness in the broader economy.

New Zealand inflation accelerated less than economists forecast in the second quarter, even as it pushed toward the top of the Reserve Bank’s 1-3% target band.

New Zealands annual consumer inflation rose to 2.7% in the second quarter of 2025, up from 2.5% in Q1, but slightly below economists forecast of 2.8%, according to Statistics New Zealand. The increase was driven by