Today’s Consumer Price Index data has inflation at 3.3 per cent for the year to July 2024.

Finance Minister Nicola Willis said it showed “we are turning our economy around and winning the fight against rampant inflation.”

“While today’s data will be welcome news for Kiwis, I know many New Zealanders are still struggling with the ongoing cost of living crisis. Our work is not done and the Government are committed to rebuilding our economy so that workers, businesses and families can get ahead.  

 “Treasury’s Budget forecasts show an improving outlook for the latter part of this year, with inflation pulling back, interest rates dropping and growth recovering. 

 “Our focus remains on reducing inflation to the Reserve Bank’s target range of 1 to 3 per cent, and when interest rates also begin to fall, it will give New Zealanders real cost-of-living relief and allow our economy to kick back into gear” Willis said

“The Budget we delivered in May was a careful combination of investment in frontline services whilst also continuing to do our bit to keep inflation down. Today’s data confirms that our approach in Budget 24 was the right one – prudent government spending, lower taxes for hard-working New Zealanders and laying the foundations for New Zealand’s economic recovery.”

Retail NZ Chief Executive Carolyn Young said “retailers are relieved to see that inflation is slowing.

“This is definitely heading in the right direction, albeit with housing and household utilities remaining at higher levels.”

Young said ““we are getting nearer to the Reserve Bank’s target range for consumer inflation of 1-3%, bringing the prospect of interest rate cuts closer. We hope this will translate into a turnaround in consumer confidence and a greater willingness to support local retail businesses.”

Taxpayers’ Union Campaigns Manager, Connor Molloy said: “For the 37th month in a row Adrian Orr and the Reserve Bank have failed to keep inflation within the target band, punishing New Zealanders and driving up the cost of living.

“But monetary policy needs fiscal friends. The consistent stream of wasteful spending is pumping more cash into the economy, driving up prices and keeping non-tradable inflation higher than it needs to be.

“Nicola Willis must take strong action to curb government spending, starting with the shopping list of suggestions we have already provided to her. The hundreds of millions in film and video games subsidies, unscientific research funding, and corporate welfare dressed up as climate action are just some of the areas that are ripe for the picking.

“It is not enough to tinker at the edges, Nicola Willis must tame the inflation beast.”