Hon Nicola Willis
Minister of Finance

New data released today shows inflation remains under control, Finance Minister Nicola Willis says.

Stats NZ released the Consumers Price Index today, showing inflation increased slightly to 2.7 per cent in the 12 months to the June 2025 quarter, remaining in the Reserve Bank’s target range.

“It’s the fourth consecutive quarter inflation has remained within the target range – a stark contrast to under the previous government, where inflation raged on unchecked, reaching 7.3 per cent in 2022,” Nicola Willis says.

“New Zealanders can be assured it now has a Government that is paying attention to forces that affect their cost of living.

“It’s pleasing to see non-tradeables inflation – which paints a picture of domestic demand and supply conditions – continues to fall.

“However, the effect of council rates on inflation is a concern.”

Stats NZ noted the largest single contributor to annual inflation was local authority rates and payments, which rose 12.2 per cent in the year.

“That’s why this Government has also been clear in its call to councils to focus on the basics and keep rates under control. We look forward to councils taking heed of this and playing their role as stewards of ratepayers’ money better in the future.

“External pressures on inflation remain, and we must remain cautious – it’s a reminder that the economic recovery is not to be taken for granted.

“That’s why this Government is focused on economic growth, because that is New Zealand’s pathway to more jobs, higher incomes and the money to pay for schools, hospitals and safer communities.”

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