The cost of living crisis has become the new normal under Labour, National’s Finance spokesperson Nicola Willis says.

“It’s a sad day when New Zealanders are being told to believe that annual price rises of 6.7 per cent are somehow good news.

“The reality is that today’s data confirms the cost of living crisis has become a struggle without end for far too many New Zealanders and their families.

“Inflation in New Zealand has been far too high for far too long. Today’s CPI figures mark the 24th month of New Zealand inflation levels being out of control, even while interest rates have been pummelling Kiwis with ever blunter force.

“Worryingly, behind the headline CPI figure sets yet another dismal fact: New Zealand is now experiencing its highest recorded rate of domestic (or non-tradeable) inflation ever - at 6.8 per cent for the year.

“This proves New Zealand’s inflation problem can’t just be blamed on global factors. The Labour Government’s stubborn refusal to rein in spending, reduce costs or fix worker shortages has fuelled our home-grown inflation fire, helping constant price rises become entrenched in our economy.

“Inflation has become a prolonged issue, delivering huge harm to Kiwis who can’t keep up with food, rent and mortgage bills.

“The Finance Minister previously tried to talk-down New Zealand’s inflation problem claiming it was merely ‘short-term’. He was completely wrong. New Zealand has now had inflation outside our target range for two years.

“This is a prolonged punishment for every New Zealander, with the Government delivering nothing to bring it to an end.

“The Government’s refusal to do its own bit to address inflation has left the Reserve Bank fighting on its own, forcing it to crank interest-rates ever higher. New Zealanders are being punished twice: once with record-high price rises and twice with sharply rising interest rates.

“National would address the underlying drivers of rampant price inflation – focus the Reserve Bank on a single inflation-busting mandate; reduce costs and regulations being faced by business; fix worker shortages; bring discipline to Government spending and reduce the tax Kiwis pay.”

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