Finance Minister aware of ongoing pressure on Pacific families despite positive inflation data

New data indicates that inflation is under control, despite Finance Minister Nicola Willis insisting this is ‘retrospective’ for Pacific families.

Statistics New Zealand released the Consumer Price Index (CPI) on Monday, revealing that inflation increased to 2.7 per cent in the 12 months to the June 2025 quarter, which falls within the Reserve Bank’s target range.

The CPI tracks inflation and measures how the prices of everyday essentials such as food, rent, and transport rise over time.

“It’s the fourth consecutive quarter inflation has remained within the target range, a stark contrast to under the previous government, where inflation raged on unchecked, reaching 7.3 per cent in 2022,” Willis says.

“New Zealanders can be assured it now has a Government that is paying attention to forces that affect their cost of living.”

Reflecting on the findings, Willis says they confirm what many Pacific families have been experiencing.

The consumers price index (CPI) is a measure of inflation for New Zealand households. It records changes in the price of goods and services. It influences interest rates and is used to calculate changes to benefit payments. Photo/Supplied

“While prices aren’t rising as fast as they were a few years ago, they are rising in some parts of our economy, and that is difficult for consumers to deal with.

“So our message to those Pacific families… is the government’s on your side. We’ve got your back. We’re doing what we can to make sure that price increases don’t get out of control.

“We’re working to strengthen this economy so that there are more jobs and better-paying jobs available for you and your family members.”

Labour finance spokesperson Barbara Edmonds. Photo/Supplied

In May, it was reported that unemployment among Pacific people stood at 10.8 per cent, nearly double the national rate of 5.1 per cent.

Labour’s Finance spokesperson, Pesetatamalelagi Barbara Edmonds, says the latest inflation figures are tough for Pacific families, especially in her electorate of Porirua, which has the second-largest Pacific population outside of Auckland.

“I am getting people coming through our doors who are struggling to put food on their table,” Edmonds says.

“Pacific people are finding it really hard, and I’m seeing it on a day-to-day basis.”

StatsNZ noted that the biggest single contributor to annual inflation was local authority rates and payments, which rose 12.2 per cent over the year.

Edmonds could not confirm Labour’s stance on capping rates, noting that the position would be disclosed later this week after a caucus meeting.

Willis challenged Labour for opposing efforts to implement a cap on rates.

“When you oppose, it’s also your job to say and here’s how we do it better and if Chris Hipkins had a good solution for how we could deal with the price of butter better, I’d be all ears.”