Hon Nicola Willis
Minister of Finance

Today’s Consumer Price Index data which has inflation at 3.3 per cent for the year to July 2024, shows we are turning our economy around and winning the fight against rampant inflation, Finance Minister Nicola Willis says.

“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.

“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.

“Our tax relief package takes effect at the end of this month, allowing Kiwis to keep more of their own money and easing the cost of living even further for low and middle income families. Our tax relief package gives average income households up to $102 a fortnight, plus FamilyBoost childcare payments of up to $150 per fortnight for eligible families with young children.

“People can see how much they will benefit from the tax changes by using the tax calculator atBudget.govt.nz/taxcalculator.”

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