January 28, 2022 Share
The highest inflation in 30 years will impact Southlanders at a time when people are already struggling with their spending, Invercargill MP Penny Simmonds says.
“Inflation of 5.9 percent for 2021 is the highest it’s been in three decades. Inflation erodes purchasing power, it means your dollar won’t go as far and it makes us all poorer.
“For Southlanders high inflation means that petrol is more expensive, grocery prices will continue to rise and for many families they will have very little left over at the end of the week.
“The Government can and should address this record inflation by reining in their spending.
"Instead, we’ve seen the Government splashing money around. In fact spending has been 40 percent higher during Finance Minister Grant Robertson’s tenure than it was under his National predecessors, and this year he is planning to raise that by a staggering 68 percent more, to $128 billion.
“This will impact on inflation and it will impact on Southlanders. Local businesses will see people spending less as they struggle to make ends meet and those who’re trying to save for a first home, or for their retirement, will find it increasingly difficult to do so.
“With wage growth of only 2.4 percent, well under half of inflation's growth, Southlanders are now going backwards - they’re working harder, but effectively earning less.
“Times are set to become much harder, but the Government could help us out by looking carefully at its finances and doing their bit to ease the record inflation that we’re currently experiencing.”