New Zealand Inflation Surges to 3.1%, Market Shifts to Rate Hike Expectations

New Zealand's inflation rate surged to 3.1% in the fourth quarter of 2025, surpassing the Reserve Bank of New Zealand's (RBNZ) target range of 1-3% and exceeding market forecasts. Released by Statistics New Zealand, the data has prompted a swift shift in monetary policy expectations, with markets now anticipating potential rate hikes later in the year, reversing previous expectations of rate cuts.