Councils Fuel the Cost-of-Living Crisis: Rates Caps Needed Now

Responding to Statistics New Zealand’s announcement that annual inflation has climbed to 2.7 percent, Taxpayers’ Union spokesman James Ross said:

“Councils are driving a cost-of-living crisis. The latest figures show annual inflation hitting 2.7 percent, and more inflation pain is on the way next quarter as the latest round of rates hikes kick in.”

“We saw this last year when Statistics NZ confirmed that more than half of the Q3 inflation spike came from council rates alone. That clearly wasn’t a one-off, as ratepayers have been hammered with a 34 percent average rates increase over the past three years.”

“This is a vicious cycle. Councils hike rates, that drives up inflation, which delays interest rate cuts, and households get squeezed from both ends.”

“The message is clear: councils won’t stop unless they’re made to. Capping rates is no longer just a nice idea, it’s essential if we want to get inflation down and take pressure off Kiwi households.”