Canterbury has experienced the highest rise in rent prices in the country, according to new inflation figures released by Stats NZ, as annual inflation reached 2.7 percent in the year to June 2025.
Rent prices in both Canterbury and the rest of the South Island jumped 5.1 percent over the past year, the highest increase among the five main regions measured.
In comparison, Wellington saw rent prices rise just 1.1 percent.
Stats NZ said the 3.2 percent national increase in rents was the smallest annual rise in four years, but still made up 13 percent of the total 2.7 percent inflation figure.
“Rents increased 2.9 percent in the 12 months to June 2021, so this latest increase, while significant, is part of a longer trend of rent pressures easing slightly,” Stats NZ spokesperson Nicola Growden said.
Nationally, consumer prices increased 2.7 percent over the 12-month period, slightly higher than the 2.5 percent increase recorded in the year to March 2025. Despite the lift, inflation has remained within the Reserve Bank’s 1 to 3 percent target band for the fourth consecutive quarter.
“Although the annual inflation rate increased from the March 2025 quarter, it remains within the Reserve Bank of New Zealand’s target band,” Growden said.
The biggest driver of inflation was local authority rates and payments, which surged 12.2 percent.
While rates are only measured once a year in the September quarter, that increase continues to be reflected in the annual inflation figure.
“Rates contributed 13 percent of the overall annual inflation rate,” Growden said. “We’ll next capture rate changes in the September 2025 quarter following the 1 July rate adjustments.”
Offsetting this rise was a significant drop in fuel prices. Petrol prices fell 8 percent over the year, with the average price for 91 octane dropping from $2.76 per litre in June 2024 to $2.54 in June 2025.
“Petrol made a significant downward contribution to annual CPI. Without it, inflation would have been 3.2 percent,” Growden said.
Quarterly inflation driven by electricity and streaming services
On a quarterly basis, inflation rose 0.5 percent between March and June 2025. Electricity prices were up 4.9 percent, the biggest quarterly jump in more than a decade.
Cultural services, including streaming subscriptions, also rose 9.5 percent in the June quarter, contributing 26 percent to the total quarterly increase.
Petrol prices, which dropped 4.8 percent over the quarter, helped dampen the overall CPI rise. Excluding petrol, quarterly inflation would have been 0.7 percent.
Canterbury households continue to face elevated living costs, driven by rising rents, rate increases, and electricity bills. The region’s growing population and sustained demand for housing are likely contributing to continued rental pressures.
With Christchurch’s expanding urban fringe and strong regional growth in Selwyn and Waimakariri, property-related costs are expected to remain under scrutiny.
Stats NZ will release the next set of inflation data for the September 2025 quarter in mid-October.
