Inflation has hit 4.1% - the highest level in more than two years.

Economists had expected it surge to somewhere between 3.9 and 4.1 percent. 

However, the end result is well below some previous forecasts, which reached 4.9%. 

If we ignored the surging fuel prices, Westpac economists reckon inflation would be about 2.8 percent. 

So what does this actually mean for the cost of living, for interest rates, and for the story of the New Zealand economy in 2026? 

Today on The Front Page, NZ Herald business editor at large Liam Dann is with us to unpack how we got to 4.1%, what’s really driving the numbers, and what comes next for households, businesses, and the path back to stable prices.

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

Inflation has hit 4.1% - the highest level in more than two years.
Economists had expected it&nbsp;surge to&nbsp;somewhere&nbsp;between 3.9&nbsp;and&nbsp;4.1 percent.&nbsp;
However,&nbsp;the end result&nbsp;is well below some&nbsp;previous&nbsp;forecasts, which reached 4.9%.&nbsp;
If we ignored the surging fuel prices, Westpac economists reckon inflation would be about 2.8 percent.&nbsp;
So&nbsp;what does this&nbsp;actually mean&nbsp;for the cost of living, for interest rates, and for the story of the New Zealand economy in 2026?&nbsp;
Today on The Front Page, NZ Herald business editor at large Liam Dann is with us to unpack how we got to 4.1%, what&rsquo;s really driving the numbers, and what comes next for households, businesses, and the path back to stable prices.
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.

Why inflation is up again and what’s really driving it

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/4b9fb7d6-f8d6-4470-afe5-b48e00356483/transcript