New Zealand's annual inflation accelerated to the fastest pace in more than two years, fanned by soaring fuel prices and bolstering the case for the Reserve Bank to execute back-to-back interest-rate increases.

The consumer price index rose more than expected in the latest quarter, driven by higher transport costs and persistent domestic price pressures. Economists say the data strengthens the argument for the central bank to continue tightening monetary policy at its upcoming meetings.

New Zealand's inflation trajectory has surprised to the upside, with core measures also showing resilience. The Reserve Bank has signaled it remains focused on returning inflation to target and may need to raise the official cash rate further.

Markets have priced in additional hikes, with the New Zealand dollar strengthening on the data. The outlook remains dependent on global commodity prices and domestic demand momentum.