Inflation decline welcome but more to do

Finance Minister Nicola Willis has welcomed the decline in the inflation rate but says there is still more to do.

Stats NZ reported today that prices rose 4.7 per cent in the year to December, the smallest annual increase in more than two years. 

The 4.7 per cent rate for the December quarter compares to a 5.6 per cent increase for the year to September 2023.

“It’s good to see inflation coming down, but there is more work to do. Rampant inflation in recent years has created a cost-of-living crisis for Kiwi households who have been pummelled by steep price increases. 

"The coalition Government is working hard to strengthen the economy so we can reduce the cost of living and get inflation back under 3 per cent.

“We have acted in our first 100 days to fight inflation by restoring the Reserve Bank’s single focus on price stability, reducing the regulatory burden on businesses that can drive cost increases and restoring discipline to government spending. 

"The previous government had its foot on the spending accelerator while the Reserve Bank had its foot on the brake.

“Our Government understands that inflation is the thief that erodes the real values of people's incomes and savings. We are focused on removing excessive inflation from our economy and won't be satisfied until we have.”