Finance Minister: The Reserve Bank is confident record inflation is a short-term issue

Author
Newstalk ZB,
Publish Date
Mon, 18 Oct 2021, 7:10PM
(Photo / File)
(Photo / File)

Finance Minister: The Reserve Bank is confident record inflation is a short-term issue

Author
Newstalk ZB,
Publish Date
Mon, 18 Oct 2021, 7:10PM

Reassurances inflation in New Zealand is a short-term issue.

The Consumer Price Index rose 2.2 per cent in the September quarter - up 4.9 per cent annually - compared to September 2020.

Excluding quarters affected by GST rate increases, it's the biggest jump since the June 1987 quarter, when it rose 3.3 per cent.

But Finance Minister says Grant Robertson told Andrew Dickens the Reserve Bank is confident it won't last.

“Their target that I set them is part of the agreement we have. It’s for inflation to sit in that 1 to 3 per cent band across the medium term, and they believe it will return to 2 per cent in that timeframe.”

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