New Zealand's consumer confidence rose to 107.2 in January from 101.5 in December 2025, marking its highest level since August 2021, according to a survey by ANZ Research and Roy Morgan Research released Friday.

Meanwhile, consumers' assessment of their financial situation rose 12 points to negative 6% from negative 18% in the previous month.

The proportion of households considering buying a major household item rose to 1% from negative 1% in December 2025.

Two-year-ahead consumer price index (CPI) inflation expectations were unchanged at 4.6%, reflecting fourth quarter food inflation of 4.3% and household energy at around 12% year on year, well above the official CPI rate of 3.1%.

Consumers' year-ahead economic outlook rose 5 points to negative 1%, while the five-year expectations rose 1 points to 12%.

Consumer confidence is at a four-year high, supporting last year's faster-than-expected recovery, though growth will likely slow as initial momentum eases, per the report.

Rising rates, a strong New Zealand dollar, and inflation weigh on the economy, while solid balance sheets and stronger business confidence point to roughly "par" growth, giving retailers hope for continued spending, the report added.