PM out of touch on cost of living crisis

The Prime Minister’s refusal to acknowledge the cost of living crisis shows she is out of touch with how tough it is becoming for Kiwis to put food on the table, says Opposition Leader Christopher Luxon.

“This week the Prime Minister stated inflation will get better this year. But in fact, the Reserve Bank’s forecast shows annual inflation is set to get worse, increasing to 6.6 per cent, while ANZ has today forecast that inflation could hit 7.4 per cent in the second quarter of this year.

“That‘s up from 5.9 per cent, which is already the highest inflation rate in three decades. Not only is annual inflation forecast to increase, but Kiwis’ wages are not keeping pace.

“The cost of everyday basics like food, petrol and housing are all through the roof. The average Kiwi family is worse off than they were 12 months ago and the Government needs to act.

“Instead, Labour is refusing to offer tax relief to Kiwis by adjusting tax brackets for inflation, meaning people will have to dig even deeper into their pockets just to fill up the car and put food on the table.

“It’s time for the Government to take action and deliver tax relief by adjusting tax brackets to account for the rampant inflation we’ve seen under Labour, to help Kiwis struggling under a cost of living crisis.”