Politicians differ on meaning of new inflation data

The Government says new data shows inflation “remains under control”, but Opposition parties say it shows the cost of living is worsening.

Stats NZ released the Consumers Price Index yesterday, July 21.

It shows that inflation increased slightly to 2.7 per cent in the 12 months to the June 2025 quarter, remaining within the Reserve Bank of New Zealand’s target range, Finance Minister Nicola Willis says.

“It’s the fourth consecutive quarter inflation has remained within the target range – a stark contrast to under the previous Government, where inflation raged on unchecked, reaching 7.3 per cent in 2022,” she says.

“New Zealanders can be assured it now has a Government that’s paying attention to forces that affect their cost of living.

“It’s pleasing to see non-tradeables inflation – which paints a picture of domestic demand and supply conditions – continues to fall.

“However, the effect of council rates on inflation is a concern.”

Willis says external pressures on inflation remain and that’s a reminder the economic recovery is not to be taken for granted.

“That’s why this Government is focused on economic growth, because that is New Zealand’s pathway to more jobs, higher incomes and the money to pay for schools, hospitals and safer communities.”

However, the Green Party says the latest inflation numbers “expose a Government failing by its own standards while our most vulnerable pay the price”.

“While [Prime Minister] Christopher Luxon talks about growth at all costs, New Zealanders across the country are being forced to choose between heating their home or feeding their families,” party co-leader Chlöe Swarbrick says.

“We can build an economy that works for people and planet, but that requires decisions that prioritise the well-being of all, instead of lining the pockets of those at the top.

“Luxon’s Government is cutting investment and creating the conditions for severe unemployment, shredding the social safety net, pushing thousands into poverty, and then punishing them for it.”

And Labour Party finance spokesperson Barbara Edmonds says the latest inflation figures show the cost-of-living crisis is worsening under National.

“Christopher Luxon promised to make the cost of living better, instead, he’s making it worse,” Edmonds says.

“He has been making excuses for 18 months now. People are sick of it.

“Food prices are surging with butter up nearly 50 per cent.

“Rates are up over 12 percent, electricity is up over eight per cent, and everyday costs continue to rise, yet this Government keeps siding with property speculators and fossil fuel companies while families are left behind.

“Christopher Luxon is completely out of touch with the needs of middle New Zealand.

“It’s no wonder 47,000 people chose to leave for Australia last year.

“Labour will prioritise help with the cost of living, and proper investment in jobs, health and homes.”