Inflation uptick reinforces need to cut waste and grow the country

“Today’s inflation figures are a reminder of why New Zealand needs to cut waste and grow the country,” says ACT Leader David Seymour.

“New Zealanders did not cause the latest global inflationary shock. Conflict in the Middle East and disruption to international energy markets have pushed up costs around the world.

“The data confirms the increase in annual inflation was driven overwhelmingly by imported inflation. We cannot control that, but an overseas shock does not absolve the New Zealand Government of responsibility. It makes discipline at home even more important.

“We cannot control foreign wars or oil prices. We can control how much we tax, borrow, spend, and regulate.

“Every dollar the Government spends competes with a household trying to pay its power bill, a business trying to employ another person, or a farmer trying to invest in better equipment. Excessive Government spending bids up prices and leaves fewer resources for the firms, farms, and families that create prosperity.

“ACT has always said Governments must spend cautiously, especially when inflationary pressures are building. It is not always a popular message. In an election year, there will always be someone promising another subsidy or ‘free’ service. But the truth is that Government spending ultimately comes from taxpayers today, or from their children through tomorrow’s debt.

“The answer to renewed inflation is not another round of political sugar hits. It is to control what we can control through responsible spending and simpler rules that unlock investment, productivity, and growth.

“ACT is campaigning to make Government smaller, smarter, and more affordable, so we can unlock New Zealand’s potential and make the country more resilient to global shocks.”