Annual inflation has ticked up slightly to 2.7 percent but remains within the Reserve Bank’s target range, according to data released today by Stats NZ.

That makes it the fourth straight quarter inflation has stayed between 1 and 3 percent.

Finance Minister Nicola Willis welcomed the result, calling it a sign the Government is managing cost-of-living pressures more effectively than before.

But it’s not all good news.

The single biggest contributor to inflation over the past year?

Council rates and payments, which jumped 12.2 percent.

While the Government credited itself for keeping national costs in check, Willis also raised concerns about local body spending, saying councils need to “focus on the basics” and do more to keep rates under control.

That hits close to home for Coasties, who’ve seen significant rate increases from Auckland Council in recent years.

For many households, it’s rates—more than groceries or power—that are quietly eating into weekly budgets.

Stats NZ also noted that non-tradeables inflation, which reflects domestic supply and demand, continues to fall—a sign that local economic pressures might be easing.

Still, Willis warned that global uncertainties remain and the recovery isn’t guaranteed.

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