Consumer Price Index: Annual inflation hits 6.9% – the biggest increase in more than 30 years
Thursday’s figures show domestic, or non-tradable, inflation hit 6%, also the highest since June 2000.
“Higher construction prices, housing rentals and local authority rates were partly offset by domestic air travel,” StatsNZ said.
“Non-tradable inflation measures goods and services that do not face foreign competition. It shows how domestic supply and demand conditions affect consumer prices.”
Reacting to Thursday’s figures, National Leader Christopher Luxon said the government must present a plan to bring inflation under control. He said inflation is “a silent thief in your pocket, putting Kiwis under massive pressure, and we are seeing a compressed middle emerging.”
“Kiwis are facing the consequences of Labour’s economic mismanagement, with inflation in New Zealand exceeding that of Australia and many other countries.
“Rents have risen by $150 a week since 2017, interest rates are rising and wage increases are barely a third of inflation. Kiwis are shrinking under Labor and many families are struggling to reach both ends.”
ACT leader David Seymour said it was “a direct result of Labour’s reliance on borrowing and spending”.
“His relentless borrowing and spending has increased the cost of just about everything. Prices are rising because there is too much money for too few goods.”
He said Kiwis need tax relief and is advocating for the average income tax rate to be reduced from 30% to 17.5%.
“The cost of living for New Zealand families is rising. Rents are up, mortgage rates are up, the cost of food is up, petrol is up, but wages are not keeping up.”
Greens finance spokeswoman Julie Anne Genter said high inflation was having a significant impact on low-income families.
“Those with the least experience inflation at a much higher rate than those with the most. The latest benefits statistics, also released today, show the value of helping people in difficulty increases, especially the value of special needs grants and advance benefit payments.
“Not only would broadening our tax base help dampen aggregate demand and short-term inflation, but having a fairer and stronger tax system is essential.”
The Greens want to increase allowances and work rates for families, introduce rent controls, make public transport fares free and ‘dismantle the supermarket duopoly to stop huge corporate profiteering by people buying the essentials to live”.
Speaking from Singapore on Wednesday, ahead of the CPI data release, Prime Minister Jacinda Ardern said external impacts were influencing inflation.
“Unfortunately we know we are at a particular point with the external pressures that New Zealand is facing, the issues of supply constraints… the war in Ukraine, it is having an impact,” she said.
“We expect that impact to be felt this quarter and we are, of course, concerned about that.”