Inflation has become embedded into the economy on Labour’s watch, with prices rising faster than anyone expected, says National’s Finance spokesperson Nicola Willis.

Inflation data for the September quarter released this morning by Statistics New Zealand shows prices rose 7.2 per cent per cent in the past year, almost a full percentage point higher than the Reserve Bank expected.

“Runaway prices are making a mockery of Labour’s claims of a strong economy. In reality, out of control inflation means most Kiwis will be poorer tomorrow than they were today,” Ms Willis says

“These inflation figures are much worse than even the most pessimistic predictions, and make the Reserve Bank’s hopes of a slow-down look wildly out of touch. Bottom line: New Zealanders must yet again brace for more pain in their back-pockets.

“Perhaps most worryingly, domestic inflation rose to 6.6 per cent, the largest rise since Stats NZ began the measurement.

“Today marks the sixth quarter in a row of inflation running above 3 per cent - the longest period of elevated inflation since 1991. Inflation has become entrenched in the New Zealand economy and price increases are now eroding the financial security New Zealanders have built up through years of effort.

“Widespread labour shortages and elevated Government spending is lighting a fire under inflation, but the Government still won’t fix its broken immigration settings or impose fiscal discipline. Labour is spending $1 billion more a week than when they entered office, pumping cash into the economy with too few results to show for it.

“Not only are Kiwis paying at the eftpos terminal, they are increasingly paying for Labour’s economic mismanagement with each and every mortgage payment.

“Kiwis deserve a real economic plan to get inflation under control, not just more spending.

“National would tackle inflation by eliminating bottlenecks in our economy, stopping wasteful spending, adjusting tax brackets for inflation, reducing costs to businesses, and returning the Reserve Bank to a single mandate.

“Ministers must do more than close their eyes, block their ears and pretend this is all driven by events overseas. They must act.”