Statistics NZ today released their latest figures for New Zealand’s Consumer Price Index (CPI). This dropped to 2.2%, which is within the target range of 1-3%.

Taxpayers’ Union Policy and Public Affairs Manager, James Ross, said “that’s only half the story, and the inflation beast isn’t slain yet.”

“Domestic inflation is still around 5%, which is proof beyond doubt that the Government needs to go further and faster in slashing wasteful spending and balancing the books.”

“Let’s not forget it’s taken a Reserve Bank-induced per-capita recession worse than after the Global Financial Crisis to try and get inflation to these levels.”

“The ‘medicine’ the Reserve Bank dished out has battered the economy and Kiwi households. Now, with interest rates decreasing, there is hope for a recovery. But the Government must increase its efforts to reduce expenditure, live within its means and ultimately start paying down some of its spiralling debt.”

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