“The Inflation Monster”: Seymour and Peters Sound Alarm as CPI Hits 3.1%

By Lions Roar Political Desk

WELLINGTON, NEW ZEALAND (Friday, January 23, 2026) — Fresh Consumer Price Index (CPI) data released today has reignited a fierce political debate over New Zealand’s economic direction. While inflation has cooled significantly from the heights of previous years, the latest 3.1% increase has triggered warnings from senior coalition figures that the battle is far from over.

The data prompted ACT leader David Seymour to warn of the “inflation monster” lurking in the shadows, while NZ First leader Winston Peters delivered a blunt assessment, calling the result “not good enough.”

⚠️ The “Monster” and the “Misfit”

Despite being within touching distance of the Reserve Bank’s 1–3% target range, coalition partners expressed frustration that the cost of living remains stubbornly high for many Kiwis.

• David Seymour (ACT): Seymour warned that any loosening of fiscal discipline could see the “inflation monster” return to devour household savings. He emphasized that the government must remain “relentless” in cutting back non-essential spending.
• Winston Peters (NZ First): Taking a more populist tone, Peters declared that a 3.1% increase was “not good enough” for New Zealanders struggling with high rents and grocery bills. He suggested that the “current trajectory” needs a sharper correction to provide immediate relief.

🏛️ The Finance Minister’s Stance

Finance Minister Nicola Willis took a more measured approach, acknowledging the pressure on households while maintaining confidence in the government’s long-term strategy.

• Reserve Bank Independence: Willis stressed that while the government manages the books, it is the Reserve Bank of New Zealand (RBNZ) that holds the primary mandate for controlling inflation through interest rates.
• Fiscal Responsibility: She argued that today’s figures reinforce the need for the government’s “mini-budget” measures and ongoing efforts to reduce the size of the public service.
• The Outlook: Willis noted that while the peak of the inflation crisis has passed, the “long tail” of price increases still requires a disciplined fiscal hand to ensure the 2% midpoint target is reached and sustained.

📊 CPI Snapshot: January 2026