New Zealand's business confidence improved in the second quarter of 2025 despite mixed trading conditions, according to the New Zealand Institute of Economic Research (NZIER). A net 18% of firms anticipate better trading in the third quarter, although 23% reported worse trading in the second quarter. Additionally, 22% of businesses expect the economy to strengthen. Consumer price inflation in New Zealand rose by 0.5% quarter-on-quarter in Q2, slightly below the 0.6% estimate and down from 0.9% in the previous quarter. Year-on-year inflation increased to 2.7%, just under the 2.8% forecast but above the prior 2.5%. Tradeable prices rose 0.3% quarter-on-quarter, below the estimated 0.5%. The Reserve Bank of New Zealand's Sectoral Factor Inflation Model indicated a 2.8% year-on-year inflation increase in Q2. Overall, inflation accelerated less than economists had predicted but remains near the top of the Reserve Bank's 1-3% target range.
New Zealand' RBNZ Sectoral Factor Inflation Model Reports a +2.8% Increase Year Over Year in Second Quarter 🇳🇿📈💹
The Reserve Bank of New Zealand’s (RBNZ) Sectoral Factor Inflation Model showed a 2.8% increase year-on-year in the second quarter.
RBZ 2Q sectoral factor model inflation index increases 2.8% year on year