Household Living Cost Inflation Continues to Ease, Government Says

“Today’s statistics release shows that while Kiwis are still facing cost-of-living pressures, the burden is beginning to ease,” Nicola Willis stated.

Average household living cost inflation has continued its downward trend, indicating that the Government’s economic policies are making a tangible impact, Finance Minister Nicola Willis says.

Data released by Stats NZ today shows the yearly household living costs increased by 3 per cent in the year to December 2024. This marks a decline from the 3.8 per cent increase recorded in the year to September 2024 and a significant drop from the 7.4 per cent rise in the year to September 2023.

“Today’s statistics release shows that while Kiwis are still facing cost-of-living pressures, the burden is beginning to ease,” Nicola Willis stated.

Government Measures to Curb Inflation

Willis highlighted that the Government had taken proactive steps to address inflation and support households.

“The Government committed to tackling the cost of living, and we are making measurable progress,” she said.

Key initiatives include:

• Refocusing the Reserve Bank on its core responsibility of controlling inflation.

• Reducing unnecessary public expenditure to improve fiscal responsibility and ensure taxpayer money is used effectively.

• Implementing reductions in the Official Cash Rate (OCR), which have led to lower average interest rates, easing financial strain on household budgets.

• Delivering New Zealand’s first tax relief package in 14 years, offering relief to families across the country.

• Introducing the FamilyBoost program, aimed at assisting low and middle-income families with essential costs.

More Work Ahead

Despite these positive developments, Willis acknowledged that more work is needed to further reduce financial pressures on New Zealanders.

“That’s why we are prioritizing economic growth to create a stronger, more resilient economy,” she said. “Sustained economic growth will lead to higher incomes, improved living standards, and greater investment in essential public services such as health and education.”

Willis reaffirmed the Government’s commitment to ensuring that New Zealanders feel real relief from the cost-of-living crisis and that economic stability remains a top priority heading into 2025.