National Party

National's Nicola Willis says Labour needs to 'take responsibility' for soaring cost of living

From the sting of the supermarket shop to the painful price at the pump, Kiwis are feeling the soaring cost of living. 

It's been confirmed inflation has hit 7.3 percent annually, a 32-year high.

Finance Minister Grant Robertson is pinning the blame on a volatile global economy, pressing home that most countries are seeing prices rise. 

However, National's Finance spokesperson, Nicola Willis, says Labour's policies are also to blame, telling Lloyd Burr that Labour should "take responsibility for its role."

"The Government should stop pointing overseas," she says.

"When we look at today's data that says domestic factors are at play, our domestic inflation hit a record high at 6.3 percent.

"What's a big issue that everyone's talking about? It's labour shortages."

Willis says Aotearoa doesn't have the workers to "get productive growth going" in our economy.

"That's adding hugely to inflation pressure.

"Second issue - the Government was warned by its economic advisers in March, the Treasury, that their spending could add to inflation if they kept on spending outside the limits.

"The Government got that advice and Grant Robertson decided to go ahead and do a record spend-up in the budget. 

"He knew that would add pressure to inflation, that would add pressure to interest rates, and he went ahead anyway.

"We've got a Government who says, well, we don't have a plan [and] instead, what we're going to do is temporary Band-Aids."

Listen to the full interview between Nicola Willis and Lloyd Burr above.

You can also download the full interview on the Lloyd Burr Live podcast, and listen on the go. Check it out on the rova app or wherever you get your podcasts.