Rising CPI means we need houses more than ever

Stats NZ’s report today that consumer price index inflation is at 2.2 per cent should worry first home buyers, says ACT Leader David Seymour.

“News today that inflation has exceeded 2.2 per cent means that interest rates in New Zealand are set to rise, hitting young home buyers,” says Mr Seymour.

“The National Party frequently offers low interest rates as evidence for their claim that housing is still affordable in New Zealand, but today’s inflation figures show that the mirage is disappearing.

“Inflation is rising and mortgage rates will follow. This will hit recent home buyers as well as putting a first home further out of reach for young New Zealanders.

“National has allowed the housing shortage to escalate, and house prices to run out of control.

“A stronger ACT will cut red tape on land use and home building, restoring home affordability – even when interest rates come off their record low levels.

“ACT in Government will keep government spending low, one of the most important ways to limit inflation. A high-spending government with Labour, and the Greens or NZ First would certainly drive spending, inflation and interest rates even higher.”

ENDS

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