StatsNZ’s latest rental and food price index data is further proof of New Zealand’s rapidly overheating economy and the skyrocketing cost of living, National Shadow Treasurer Andrew Bayly says.

“The rising cost of living was made abundantly clear when StatsNZ recently released data showing inflation was now at its highest level in more than a decade.

“StatsNZ now says rental prices have increased 5 per cent in just the last year.

“In the South Island, excluding Canterbury, rents have gone up a staggering 10 per cent in just 12 months.

“Labour is pouring billions of dollars of wasteful spending into the New Zealand economy. This is pushing our economy to the limit and it’s why we’re seeing prices rise so quickly.

“The majority of banks are now predicting interest rates to start rapidly rising – this will make cost of living problems even worse for Kiwis as their mortgage rates jump.

“The Government has already allocated $45 billion from its $50 billion Covid Recovery Fund. Much of this low-quality spending was intended to keep unemployed people busy and stimulate demand but, with the economy overheating, it is clearly no longer needed.

“The Government needs to stop its wasteful spending and rein in cost of living increases and reduce the need for interest rate rises.”