NZ’s Inflation Drops to 2.2%, Signaling Economic Relief, Says Finance Minister

The Finance Minister noted that with inflation under control, New Zealanders could anticipate mortgage rate reductions and an improved business environment.

Finance Minister Nicola Willis has welcomed the latest inflation figures, describing them as "more good news for New Zealanders." According to Stats NZ, the inflation rate fell to 2.2% in the year to September, down from 3.3% in June. This marks a significant drop from 5.6% a year ago and over 7% in 2022.

"At 2.2%, inflation has returned to the Reserve Bank’s target range of 1% to 3% for the first time since March 2021," Willis stated. "The era of crushing price rises is now over."

The Finance Minister noted that with inflation under control, New Zealanders could anticipate mortgage rate reductions and an improved business environment. "Businesses will find it easier to invest and innovate with lower borrowing costs," she said.

Willis attributed the progress to the Government's efforts to curb inflationary pressures. These efforts include restoring fiscal discipline, reducing bureaucratic red tape, and rebuilding business confidence. Additionally, tax relief implemented on July 31 and FamilyBoost childcare payments have further supported New Zealand families, improving their financial standing compared to a year ago.

"There is more work to be done to get the economy growing, but New Zealanders can be confident we are headed in the right direction," Willis affirmed.