Government spending driving up cost of living

Commenting on today’s Consumer Price Index announcement, Taxpayers’ Union Campaigns Manager, Callum Purves, said:

“Today’s inflation figures will not come as much consolation for families across New Zealand who are struggling with the cost of living. While the overall rate may have dropped, food price increases and domestic inflation both continue to remain stubbornly high despite the aggressive interest rate hikes by the Reserve Bank.

“The Government’s excessive levels of spending have undoubtedly had a large bearing on the rate of domestic inflation. As the International Monetary Fund indicated last month, the Government needs to rein in its wasteful expenditure and focus new spending only on cyclone and flooding recovery. If the Government really cares about the cost of living, it should stop contributing to the problem and cut back its spending.”