"Inflation is still under control but no thanks to the Government," Labour finance spokesperson Michael Cullen said today.

"The CPI data for the June quarter, excluding credit services, show a 0.5 percent rise taking the annual figure to 1.2 percent, up from 1 percent in March. Although relatively modest, the movement was higher than market expectations.

"And much of it can be sheeted back directly to Government policy. Big contributors were the recent sharp increases in car registration and drivers' licence fees and the round of power price rises which followed the Government's electricity reforms.

"These influences are unhelpful given emerging inflationary pressures in the housing market and the likely impact of today's increase in petrol prices," Dr Cullen said.

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