The Finance Minister's fired a warning to local councils - saying it's time for spending discipline and restraint.

Stats NZ data for the year to December shows the inflation rate remains unchanged at 2.2 percent.

Simon Watts has picked up the Local Government portfolio from incoming Health Minister, Simeon Brown.

Nicola Willis says in too many cases, rates have been out of control.

"We are looking at this concept of putting some limits on the level of rate increases that councils can do."

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