NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / New Zealand

Inflation: National, Act, NZ First call for more than 'band-aids and gimmicks'

Claire Trevett
By Claire Trevett
Political Editor·NZ Herald·
18 Jul, 2022 02:55 AM5 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Finance Minister Grant Robertson says there are "no simple fixes" to the issue of high inflation – but National and Act say the Government should look to its own spending habits to try to ease the strain.

Responding to the annual inflation rate of 7.3 per cent and a rise of 1.7 per cent over the June quarter in the Consumer Price Index, Robertson said the Government was comparatively well placed to ride out the storm and provide support for households and businesses, given low unemployment and relatively low debt.

He pointed to the Government's decision to extend relief in the form of fuel tax cuts to January next year and a cost-of-living payment from next month for those on low incomes.

However, he also warned high inflation was here for some time yet, saying while most economists expected the June quarter result to be the peak of the cycle, it would be above usual levels for some time.

"Global factors such as the ongoing impacts of the pandemic on supply chains and the war in Ukraine are affecting prices, particularly those for fuel and building materials, and this means demand is not being met, and having a sizeable effect on New Zealand households and businesses."

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

While Robertson was putting it down to a "volatile and uncertain global environment," National's finance spokeswoman Nicola Willis said the Government was not helping.

She said it was not a problem that had crept up on them and the response should be more than "relying on temporary band-aid payments and gimmicky policymaking."

"Labour keeps blaming international events like the war in Ukraine but refuses to take responsibility for their policy failures at home.

Advertisement
Advertise with NZME.

"We have been calling on the Government to present a plan to fight inflation for months.
Spending more and announcing temporary measures won't cut it."

She said Treasury had told Robertson that a large portion of inflation was being driven by domestic demand and high Government spending was making it worse.

"Instead of listening to this advice, he ignored it. A real plan would focus on strengthening the productive economy and unlocking the bottlenecks in the economy that are worsening inflation, including fixing failed immigration settings and stopping adding costs to business."

NZ First leader Winston Peters has also weighed in on Twitter, saying the cost of living "crisis" was out of control "and is being made worse by the ineptitude of those who purport to be running our country."

Discover more

Business

'Outbreak of gloom': Why everything in NZ feels so bad right now

18 Jul 05:00 PM
Opinion

Liam Dann: Inflation data is ugly but has it peaked?

18 Jul 05:44 AM
Inflation

Cost of living crisis: Inflation hits 7.3%, highest in 32 years

18 Jul 12:18 AM
New Zealand|politics

Fuel tax cut: 'Not targeted to help those who need it most'

17 Jul 06:24 PM

He said the Sunday announcement that the fuel tax cuts would be extended to January was a knee-jerk response.

"It a clear example of the modus operandi of this Government, who continue to convince themselves that throwing money at a problem bodes well for our future. In the end, the taxpayers will have to pay the piper."

A Treasury paper to Parliament's finance and expenditure select committee had warned that if the Government spent more than it had allocated in the Budget, it risked pushing interest rates higher.

It said government spending and consumption tended to have the largest effects on domestic demand and interest rates.

Act's housing spokeswoman Brooke van Velden said one of the drivers of inflation was the high cost of construction material and called for more competition in that market. She said the plasterboard shortage was evidence of "unnecessary and illogical regulations" in that market.

"Plasterboard is a sandwich of plaster and cardboard. What first world, industrialised country gets itself into such a pickle where we have a nationwide shortage? An overly bureaucratic one and it needs to stop, today."

Advertisement
Advertise with NZME.

However, Robertson said the figures reflected "a volatile and uncertain global environment" which was also battering other countries.

"There are no simple fixes in the face of global inflation and its impact here in New Zealand."

He has said that the cost-of-living package was not expected to be inflationary because it was from money that had already been allocated in the Budget – not new money.

On Sunday, Robertson held a press conference to announce temporary fuel tax cuts and road user charges, as well as half-price public transport, would be further extended until the end of January next year.

The rising cost of fuel was one of the drivers of high inflation and those measures were estimated to reduce headline inflation by 0.5 percentage points in the June 2022 quarter.

The extension of the scheme was expected to cost $589 million, and money would be taken out of other areas to make up the shortfall for the National Land Transport Fund.

Advertisement
Advertise with NZME.

The Government was also monitoring margins in the fuel market to ensure that tax relief was being passed on in full.

The cost-of-living package will also begin in August, giving about $27 per week for people over 18 earning less than $70,000 who do not receive the Winter Energy Payment.

Save

    Share this article

Latest from New Zealand

New Zealand

'Life-changing': International flights return to Hamilton Airport

18 Jun 05:23 AM
New Zealand

Person dies after being run over by own vehicle

18 Jun 04:58 AM
New ZealandUpdated

'Awful incident': Teen girl seriously injured by car outside Nelson college

18 Jun 04:51 AM

Jono and Ben brew up a tea-fuelled adventure in Sri Lanka

sponsored
Advertisement
Advertise with NZME.

Latest from New Zealand

'Life-changing': International flights return to Hamilton Airport

'Life-changing': International flights return to Hamilton Airport

18 Jun 05:23 AM

Jetstar's first planes to Sydney and Gold Coast have taken off from Hamilton this week.

Person dies after being run over by own vehicle

Person dies after being run over by own vehicle

18 Jun 04:58 AM
'Awful incident': Teen girl seriously injured by car outside Nelson college

'Awful incident': Teen girl seriously injured by car outside Nelson college

18 Jun 04:51 AM
Father, daughter steal $190k in ATM heist, $159k still missing

Father, daughter steal $190k in ATM heist, $159k still missing

18 Jun 04:09 AM
Help for those helping hardest-hit
sponsored

Help for those helping hardest-hit

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP