In this episode of Economy Made Simple, Shamubeel Eaqub breaks down inflation in plain English, explaining what’s actually driving rising prices in NZ and what households can realistically expect in 2026.

Inflation has dominated headlines and kitchen table conversations alike. From groceries and electricity bills to mortgage rates and job prospects, Shamubeel explores why the cost of living still feels intense, even as headline inflation "moderates".

This episode covers:

• What inflation actually measures and how the Consumer Price Index (CPI) works in NZ
• Why recent inflation has felt especially painful, particularly for food and everyday essentials
• The different causes of inflation in NZ
• How the Reserve Bank responds to inflation and why interest rates move in cycles
• Why price increases have been uneven across sectors, with essentials rising while big-ticket items fall
• What to expect in 2026 for food prices, insurance, rates, wages and the labour market
• Why/how inflation impacts low-income households and retirees more severely

Shamubeel also reflects on how recent inflation has shifted over time, from pandemic disruptions to labour shortages and now to cost pressures in necessities. He explains why we’re unlikely to see prices fall sharply, but why moderating inflation combined with improving job prospects could bring some relief next year.

If you’ve been wondering why your weekly supermarket bill feels heavier, why mortgage rates move the way they do, or whether 2026 might finally feel easier, this episode gives you the context to understand what’s happening and what could come next.

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Disclaimer: This podcast contains personal opinions and is intended to provide educational information only. It doesn't relate to your particular financial situation or goals and is not financial advice or recommendations. Simplicity New Zealand Limited is the issuer of the Simplicity KiwiSaver scheme and investment funds. For product disclosure statements please visit Simplicity's website simplicity. kiwi.