Countries around the world are watching inflation return to normal levels, yet New Zealand’s economy is still being held hostage by a persistent cost of living crisis, National’s Finance spokesperson Nicola Willis says.

Statistics New Zealand’s Consumer Price Index release this morning shows annual price rises of 6 per cent for the 12 months to June.

“Global inflation is coming off the boil, yet New Zealand’s is still piping hot.

“In the last week, we have seen Canada’s inflation rate fall to 2.8 per cent, and the United States’ fall to 3 per cent. Australia’s inflation is also lower that ours, at 5.6 per cent.

“New Zealand is now entering its third year of out-of-control inflation – the longest period of high inflation since the early 1990s.

“Inflation in still running rampant at 6 per cent, with the domestic component - non-tradable inflation – running at 6.6 per cent, meaning most of the problem is local.

“New Zealanders are continuing to be slammed with higher prices everywhere they look, and the Government has done nothing to bring it to an end.

“Labour’s refusal to rein in spending, reduce costs or fix worker shortages has fuelled our home-grown inflation fire, helping constant price rises become entrenched in our economy.

“The Government’s refusal to do its own bit to address inflation has left the Reserve Bank fighting on its own, giving them no choice by to crank interest-rates ever higher. Fortnightly interest costs on a $500,000 mortgage have gone from $500 to $1,250 in the past two years alone.

“National would address the underlying drivers of rampant price inflation – focus the Reserve Bank on a single inflation-busting mandate, reduce costs and regulations being faced by business, fix worker shortages, bring discipline to government spending and reduce the tax Kiwis pay.”