Finance Minister Nicola Willis is hoping inflation can drop back into the Reserve Bank's target band off the back of the latest data.

The annual inflation rate for 2025 was 3.1 percent, up from 3 percent for the year to September.

Willis says the Government supports the Reserve Bank getting back to their target band of 1 to 3 percent.

"It's inflation that's the broadest driver of the cost of living. At the same time, interest rate reductions have been really important to recovering our economy after a very difficult period, but it's always the case that as the economy recovers, you do expect that eventually interest rates do go up."

LISTEN ABOVE

Finance Minister Nicola Willis is hoping inflation can drop back into the Reserve Bank's target band off the back of the latest data.
The annual inflation rate for 2025 was 3.1 percent, up from 3 percent for the year to September.
Willis says the Government supports the Reserve Bank getting back to their target band of 1 to 3 percent.
"It's inflation that's the broadest driver of the cost of living. At the same time, interest rate reductions have been really important to recovering our economy after a very difficult period, but it's always the case that as the economy recovers, you do expect that eventually interest rates do go up."
LISTEN ABOVE

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers. 

Whether you’re a small business owner or interested in what’s going on in the Big End of Town, this podcast encompasses the sharpest voices and minds in the world of business.

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers. Whether you’re a small business owner or interested in what’s going on in the Big End of Town, this podcast encompasses the sharpest voices and minds in the world of business.

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers.

Best of Business

Nicola Willis: Finance Minister on the impact of the latest rise in inflation

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/0f4700f3-830e-420a-a7df-b3de00657b2b/transcript