Today’s inflation figures are more good news for New Zealanders, Finance Minister Nicola Willis says.
Stats NZ reported today that the inflation rate had dropped from 3.3 per cent in the year to June to 2.2 per cent in the year to September. That is down from 5.6 per cent just a year ago and over 7 per cent in 2022.
“At 2.2 per cent inflation, it is also the first time the rate has been back within the Reserve Bank’s target range of 1 to 3 per cent since March 2021.
“The era of crushing price rises is now over.
“Kiwis can look forward to mortgage rate reductions and businesses will find it easier to invest and innovate with a lower cost of borrowing.
“The steps the Government is taking to reduce inflationary pressures by restoring discipline to public spending, reducing the red tape that is stifling innovation and development, and rebuilding business confidence are working.
“Together with the tax relief that took effect on 31 July, and the FamilyBoost childcare payments that many families are now receiving, falling inflation and interest rates mean large numbers of families are now better off than they were a year ago.
“There is more work to be done to get the economy growing, but New Zealanders can be confident we are headed in the right direction.”