New Zealand Q2 Inflation Rises, Lebanon Surges

New Zealand's annual inflation rate climbed to 2.7% in the second quarter of 2025, up from 2.5% previously, but stayed below market expectations of 2.8%. Key inflation drivers were local authority rates, rents, and electricity prices, while petrol and early childhood education costs declined. The quarterly Consumer Price Index (CPI) rose 0.5%, less than the expected 0.6%, fueling speculation that the Reserve Bank of New Zealand may consider a rate cut in August amid ongoing economic weakness. Inflation remains within the RBNZ's 1% to 3% target, providing some relief. Additionally, Lebanon's annual inflation surged to a four-month high of 15% in June 2025, emphasizing persistent cost-of-living pressures in that country. The NZX 50 index responded positively to New Zealand's softer inflation data.