- By Christopher Luxon, Prime Minister and MP for Botany
Last week’s data shows inflation has fallen to 3.3 per cent for the year to July – a three-year low.
This shows we’re turning our economy around and comes a week after food prices fell for the first time in nearly six years.
In Budget 2024, we made tough decisions, investing in key frontline services, while stopping wasteful spending and delivering meaningful tax relief. We know that this approach is working.
While this inflation data will be welcome news for Kiwis, National understands many people are still struggling with the ongoing cost of living crisis.
We have a lot more work to do and we’re committed to rebuilding our economy so you can get ahead.
We remain focused on reducing inflation to the Reserve Bank’s target range of 1-3 per cent, which will help interest rates fall and make it easier to cover mortgage repayments.
More help is on the way with tax relief taking effect from the end of July, allowing Kiwis to keep more of their own money and easing the cost of living further for low- and middle-income families.
Our tax relief package will see average income households up to $102 a fortnight better off, with FamilyBoost childcare payments also offering up to $150 a fortnight for eligible families with young children.
If you haven’t already found out how much you’ll save, make sure you join the hundreds of thousands of New Zealanders who’ve used the tax calculator at www.budget.govt.nz/taxcalculator to do so.
National is proud to deliver well-deserved tax relief for Kiwis – the first such relief since 2010.
We’re funding these changes with a mix of savings and revenue initiatives, meaning it won’t require additional borrowing and won’t add to inflation pressures.
I’ve talked to many residents in our electorate throughout the campaign and since we’ve become Government.
I know how tough it’s been for you and your family across the past few years – which is why we’re so determined to deliver this tax relief.
We’re pushing ahead with our wider plan to rebuild the economy by slashing red tape to get stuff built, stopping wasteful spending, improving educational achievement and strengthening trade and investment.
It’s only through a strong economy with fewer hurdles and more opportunities for businesses and families that we can afford to invest in the public services that you deserve.
