Thursday, May 23, 2024

Falling inflation a sign of the times says Minister

Today’s announcement that inflation is down to 4% is encouraging news for Kiwis, but there is more work to be done, says acting Finance Minister, Chris Bishop.

“Inflation is now at 4%, the lowest it’s been since June 2021 and a far cry from the 7.3% inflation that Kiwis suffered through in 2022,” Mr Bishop says.

“Low and stable inflation is important for New Zealand’s long-term success, and for Kiwis’ back pockets. We need to see inflation at the Reserve Bank’s target range of 1 to 3% so that interest rates can follow, giving New Zealanders cost of living relief and allowing the economy to start growing strongly again.”

The Minister said the Government has a plan to get the cost of living under control and help Kiwis get ahead.

“That includes reducing taxes for hardworking Kiwis, FamilyBoost childcare tax credits, ensuring the Reserve Bank is focused solely on getting inflation under control, reducing wasteful government spending and cutting red tape to make it easier and cheaper to get things done.”

“It’s only through a strong economy that we can reduce the cost of living, lift incomes and afford the schools, hospitals and other public services that New Zealanders rely on.

“The previous Labour Government’s appalling mismanagement of the economy and the Crown’s finances has left a legacy of high inflation and wasteful expenditure, which has caused untold pain and stress for Kiwi households.

“Undoing the damage caused by Labour will take time, but today’s numbers reinforce that the coalition Government’s plan to get New Zealand back on track is the right one,” said the Minister.

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