Inflation is up and GDP is down in New Zealand, presenting a tricky challenge for policymakers. Photo: Ben McKay/AAP PHOTOS

Headline inflation has risen for the third straight quarter in New Zealand, underlining the challenge for central bankers dealing with a "bogged down" economy.

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Stats NZ confirmed on Monday the consumers price index (CPI) inflation rate lifted from 2.7 per cent to three per cent in the year to September 2025.

Quarterly CPI was measured at one per cent, the biggest three-month jump in two years.

The cost of power was one of the biggest contributors to the jump

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