New Zealand's Producer Price Index for inputs rose 2.9% quarter on quarter in the second quarter of 2025, sharply above market expectations for a 1.3% increase and up from a 0.7% rise in the previous quarter. The jump was the largest quarterly increase in more than a decade and pointed to renewed wholesale cost pressures across the economy. Construction, manufacturing and utilities were among the main contributors, with electricity, gas and construction materials recording substantial increases amid domestic supply constraints and global commodity price moves. The reading matters because higher producer input costs can feed through to consumer prices if businesses pass them along, adding to inflation risks. The data strengthened the New Zealand dollar slightly and reinforced expectations that the Reserve Bank of New Zealand may hold off on near-term interest rate cuts, though the central bank has also indicated some cost pressures may prove temporary as supply chains normalize.