The Reserve Bank has revealed that the annual inflation rate for 2025 was 3.1%.

It puts the inflation rate outside the bank’s target band of 1 to 3%.

While it’s slowed sinificantly since the most recent peak of 7.3% in the June 2022 quarter, it has risen every quarter since December 2024.

And while economist expect it to sit around 3 or 3.1% -- the Reserve Bank’s November prediction had it at 2.7%.

But, what does it all mean? And are dreams of a quick fix in 2026 in the rear view mirror? 

Today on The Front Page, NZ Herald Business editor at large, Liam Dann is with us to break it down.

Follow The Front Page on iHeartRadio, Apple Podcasts, Spotify or wherever you get your podcasts.

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

The Reserve Bank has revealed that the annual inflation rate for 2025 was 3.1%.
It puts the inflation rate outside the bank&rsquo;s target band of 1 to 3%.
While it&rsquo;s slowed sinificantly since the most recent peak of 7.3% in the June 2022 quarter, it has risen every quarter since December 2024.
And while economist expect it to sit around 3 or 3.1% -- the Reserve Bank&rsquo;s November prediction had it at 2.7%.
But, what does it all mean? And are dreams of a quick fix in 2026 in the rear view mirror?&nbsp;
Today on The Front Page, NZ Herald Business editor at large, Liam Dann is with us to break it down.
Follow The Front Page on iHeartRadio, Apple Podcasts, Spotify or wherever you get your podcasts.
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

Go beyond the headlines with The Front Page, the New Zealand Herald’s daily news podcast. Each weekday Chelsea Daniels unpacks the stories shaping Aotearoa, from what’s happening in our own backyard to global events shaping our future.

Every episode we speak to leaders, experts, reporters, and those living the story, so you get the full picture. 

Subscribe now so you never miss an episode.

Go beyond the headlines with The Front Page, the New Zealand Herald&rsquo;s daily news podcast. Each weekday Chelsea Daniels unpacks the stories shaping Aotearoa, from what&rsquo;s happening in our own backyard to global events shaping our future.
Every episode we speak to leaders, experts, reporters, and those living the story, so you get the full picture.&nbsp;
Subscribe now so you never miss an episode.

Every day, The Front Page takes you behind the scenes of the biggest story from the New Zealand Herald. Hosted by Damien Venuto

The Front Page

Go beyond the headlines with The Front Page, the New Zealand Herald’s daily news analysis podcast. Each weekday Chelsea Daniels unpacks the stories shaping Aotearoa, from what’s happening in our own backyard to global events shaping our future. Every episode we speak to leaders, experts, reporters, and those living the story, so you get the full picture. Subscribe now so you never miss an episode.

Go beyond the headlines with The Front Page, the New Zealand Herald&rsquo;s daily news analysis podcast. Each weekday Chelsea Daniels unpacks the stories shaping Aotearoa, from what&rsquo;s happening in our own backyard to global events shaping our future. Every episode we speak to leaders, experts, reporters, and those living the story, so you get the full picture. Subscribe now so you never miss an episode.

What stubborn inflation could mean for your mortgage this year

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/8a490681-afb0-4852-b355-b3db001f8ac0/transcript