Inflation has fallen and the economy is strengthening, but New Zealand cannot afford to put that progress at risk with Labour’s unaffordable spending plans, National’s Finance spokesperson Nicola Willis says.
“Annual inflation has fallen to 3.7 per cent in the year to September, down from 4.1 per cent.
“Without the fuel price hike caused by the conflict in the Middle East it would have been 0.7 percentage points lower, but we have to be realistic.
“The international environment remains volatile and, after falling during the last quarter, oil prices are increasing again which will likely flow through to the inflation figures for the current quarter.
“This reinforces the importance of continuing to responsibly manage the government’s books.
“National’s economic plan is working. By stopping wasteful spending and getting the books back in order, we’ve eased government pressure on inflation and interest rates, while delivering tax relief so Kiwis can keep more of what they earn.
“New Zealand’s economy is growing faster than Australia, the UK and the US, and by sticking with National’s plan it is expected that 220,000 more jobs will be created over the next four years and wages will grow faster than prices.
“Our progress and positive forecasts are the result of hard work by Kiwis backed by National’s disciplined economic management, but it would all be undone by a Labour coalition that would spend more, borrow more and tax more.
“The consequences of the last Labour Government’s excessive spending were laid bare in a 2025 Treasury report, which made clear that Labour’s spending during and after Covid had a long-lasting impact on the economy and households.
“New Zealanders remember what happened under the last Labour Government. Inflation hit 7.3 per cent, mortgage rates skyrocketed, food prices rose 12.5 per cent in a year, and rents increased by $180 a week on average.
“The lesson from Labour’s spending mistakes is clear – when governments keep pouring money into the economy after the immediate crisis has passed, inflation rises, debt grows, and families pay the price.
“But Labour has not learned that lesson and is promising to do it all again, with at least $18 billion of unfunded spending promises that mean more borrowing and higher taxes. Between Labour and its coalition partners, there are at least nine new taxes on the table which would eat into every household’s budget.
“That is the risk at this election. National will stick with the plan that is working to bring inflation down, rebuild the economy and help Kiwis get ahead. Labour would undo that progress with more excessive spending New Zealand cannot afford.
“This is going to be a very tight election and New Zealanders have worked too hard to go backwards now. National needs three more years to finish the job. To stick with the plan that is working, party vote National.”
