Inflation was 2.6%, but Stats NZ says impractical to retrospectively correct

Friday, 2 May 2025

Stats NZ has just given a reason not to get too hung up on the minutiae of economic data, admitting its inflation figure for the March year has been recorded incorrectly.

Stats NZ has admitted it should have recorded annual inflation in the year to March at 2.6%, instead of 2.5%.

However, it has decided it would create more problems than it was worth to retrospectively correct the “official figure” it has already published.

That is because some organisations have used its earlier data as the basis for making payments under index-linked contracts.

It has decided to instead add back in the missing ‘0.1%’ of inflation when it releases figures for the June quarter in July.

Stats NZ said the error occurred because it overlooked the $25 increase in vehicle relicensing costs that took effect at the start of January, when it published its latest inflation update on April 17.

The consumer price index (CPI) records changes in the price of hundreds of goods and services. (First published January 20, 2022)

“While these prices were collected by Stats NZ, the increases were not included in our consumer-price index calculations,” it said.

The inflation figure was widely used for contract indexation which is why it was not changed after publication, it said.

“We have confirmed with key customers that this is their preferred approach.”

Inflation at 2.5% had already been at the top end of economists’ expectations.

The fact it should have been recorded higher may raise concerns inflation is more likely to run close to the top of the Reserve Bank’s 1% to 3% target band later this year, although the recent appreciation of the New Zealand dollar could lessen that risk.