Annual inflation rose 3.0 percent in the year to September 2025, driven by sharp increases in electricity, rent and council rates, according to Stats NZ.

The figure sits at the top of the Reserve Bank’s 1 to 3 percent target range and follows a 2.7 percent rise in June.

Electricity prices climbed 11.3 percent, the biggest annual jump since 1989, while rents rose 2.6 percent and local authority rates were up 8.8 percent.

Together, these three areas made up nearly a third of the total rise in living costs.

Stats NZ spokesperson Nicola Growden said electricity costs were at their highest in decades, reflecting structural pressures in the market.

“Annual electricity increases are at their highest since the late 1980s,” she said.

Households in the Hibiscus Coast are experiencing an increase in power bills and rate notices.

While rents have risen more slowly this year, many local families are still feeling the flow-on from higher service costs and housing expenses.

Quarterly inflation came in at 1.0 percent, with rates and vegetables leading the charge.

Seasonal increases for tomatoes, cabbage and lettuce pushed vegetable prices up 12.2 percent over the quarter.

Petrol, pharmaceuticals and telecommunications gear eased slightly, offering a small offset.

But overall, the cost of living remains high, leaving Coasties balancing budgets just as summer energy use and council rate instalments kick in.

Know something local worth sharing?

Send it to [email protected] — we’ll help spread the word.