- By Christopher Luxon, Prime Minister and MP for Botany
Data out last week showing inflation has dropped from 3.3 per cent in the year to June, 2024, to 2.2 per cent in the year to September, 2024, is great news for New Zealanders, and another sign our economic plan is working.
That’s down from 5.6 per cent just a year ago and over 7 per cent in 2022.
It’s also the first time inflation has been back within the Reserve Bank’s target range of 1 to 3 per cent since March, 2021. This means the era of crushing price rises is now over.
Combined with two cuts to the official cash rate by the Reserve Bank, Kiwis can now look forward to mortgage rate cuts, and businesses will find it easier to invest and innovate with lower borrowing costs.
Our Government is laser-focused on getting our economy growing so you and your family can get ahead.
We’ve worked hard to stop wasteful Government spending and get rid of the thicket of red and green tape that stifles investment in the economy.
Business confidence is also at its highest level in 10 years, which shows businesses believe our economy is turning the corner.
As you know, we’ve delivered income tax relief for hard working New Zealanders for the first time in 14 years and, combined with FamilyBoost childcare payments and falling inflation, many families are seeing their cost of living move in the right direction.
If you’re eligible and haven’t yet registered for FamilyBoost, please do so by visiting the Inland Revenue website.
There’s more work to be done to keep the economy moving but Kiwis can be confident we’re on the right track.
