Stats NZ reported that the inflation rate dropped to just 2.2% in the year to September. That’s down from 5.6% just a year ago and over 7% in 2022.
You might remember the very first thing our Government did was change the Reserve Bank’s rules so they had to focus on reducing interest rates. This, along with work cutting wasteful public spending, reducing the red tape that stifles innovation and development, and rebuilding business confidence, is clearly working.
At 2.2% inflation, this is the first time the rate has been back within the Reserve Bank’s target range of 1 to 3% since March 2021. The era of crushing price rises is now over. Kiwis can look forward to mortgage rate reductions, and businesses will find it easier to invest and innovate with lower borrowing costs.
Together with the tax relief that took effect on July 31 and the FamilyBoost childcare payments that many families are now receiving (please apply today if you can), falling inflation and interest rates mean large numbers of families are now better off than they were a year ago.
There’s more work to be done to get the economy growing, but New Zealanders can be confident we’re headed in the right direction.
I want to also give our seniors an important update. Last week we announced the next steps for the Retirement Villages Act review, which is an important piece of work for many in our community.
Following 11,000 public submissions, we are focusing our review on three key areas: Maintenance and repairs of operator-owned chattels and fixtures; managing complaints and disputes; and options for incentivising or requiring earlier capital repayments when residents move out of a village.
The continuation of the Retirement Village Act review reflects the Government’s agreement to work with the sector and safeguard the interests of the residents living in retirement villages. This will likely take a year to work through but I’ll keep you updated.
