Inflation has peaked, question is how fast it will fall - commentator

Source: 1News

Economic and political commentator Bernard Hickey reckons inflation has peaked at 7.3%.

Stats NZ announced on Monday inflation has risen to 7.3%, a 32-year high.

Rising prices for construction and rentals for housing were the main driver.

"[It's] the peak we're going to see and it's all downhill from here," Hickey told Breakfast on Tuesday.

READ MORE: Inflation rises to 7.3%, a 32-year high

"The question is how fast and of course 7.3% is way, way above where we have agreed we want inflation to be, which is around 2%."

Hickey said he feels both main political parties - Labour and National - aren't committed to fixing the issue.

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"The question is, how much of it is the New Zealand government and Reserve Bank responsible for? How much of it is imported? Has it peaked and what do we do from here?"

Finance Minister Grant Robertson said on Monday the latest consumer price index figures reflect the "volatile and uncertain global environment".

READ MORE: Explained: How is inflation measured and how often?

However, he said New Zealand is "well positioned to respond".

"We are well positioned to respond with unemployment at a record low and debt at levels substantially below countries we compare ourselves with and we will continue to support New Zealanders to get through this challenging time."

The Government recently announced reductions on fuel excise duty, road user charges and half price public transport are being extended until the end of January 2023.

Stats NZ said some of the Government's cost of living measures had been reflected in the June 2022 quarter.

National is calling on the Government to adopt its five-point plan to fight inflation - return the Reserve Bank to a single focus on price stability, reduce costs on business, remove bottlenecks in the economy, restore discipline to Government spending, and prioritise tax relief for workers.

Labour's Michael Wood has said all National is putting forward, however, is "big tax cuts for the rich".

"[They mean] someone like me as a Cabinet minister would save $8000 per year. We think it's much better to target the support to low and middle income families who are feeling the pressure at the moment."