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

The SME Stream · Jul 21, 2026 · 18m

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…