4. Question No. 4—FinanceHon MICHAEL WOODHOUSE (National) to the Minister of FinanceQuestion No. 4—Finance4. Hon MICHAEL WOODHOUSE (National) to the Minister of Finance: What responsibility if any does the Government take for the Consumers Price Index reaching 4.9 percent in the September 2021 year?Hon GRANT ROBERTSON (Minister of Finance): Responsibility for the Consumers Price Index (CPI) is shared across different areas of Government depending on what aspect the member is referring to. For example responsibility for keeping the CPI at a reasonable level over the medium term is part of the mandate of the Reserve Bank of New Zealand (RBNZ). The RBNZ has operational independence in the way they perform their role; however I would note that they have tended to put more weight on measures of core inflation rather than risk over-reacting to transitory factors that might not be a good indication of the state of the domestic economy. However if the member is asking whether Government decisions have led to recent increases in inflation I would point out to the member that commodity price increases and global supply disruptions are affecting all economies around the world. This is evidenced by the August 2021 inflation across the OECD being at an annual rate of 4.3 percent.Hon Michael Woodhouse: Does he accept spending billions of dollars outside of Budget allowances and direct COVID support has pushed up inflation?Hon GRANT ROBERTSON: What I'd accept is that the support that the Government has given to New Zealand businesses workers and communities has meant that we have had one of the strongest economic responses to COVID-19 at the same time as having one of the lowest mortality rates and hospitalisation rates.Hon Michael Woodhouse: Is he concerned that economic commentators are now predicting that inflation will get worse before it gets better with price increases particularly notable in petrol food and housing?Hon GRANT ROBERTSON: In all three of the areas that the member mentions there there are global supply chain disruptions that are causing significant impacts. There is a large debate taking place among economists around the world as to the persistence or the permanence of inflation. Those supply chain disruptions are ones that we continue to work on but they are in fact ones that are global.Hon Michael Woodhouse: Does he still believe the inflation increases for June and September will wash out" as he said in July and does he agree that when they do even higher rates are likely to wash in?Hon GRANT ROBERTSON: As I said there is significant debate among economists around the world about the persistence or the permanence of these levels of inflation. That will emerge over time. What I do know is that on this side of the House we remain committed to supporting New Zealanders through COVID-19.Hon Michael Woodhouse: Well does he accept that the economy is not in a good position for many New Zealanders experiencing rent increases of up to 7.8 percent over the last year and wage increases that pale in comparison with inflation?Hon GRANT ROBERTSON: Well if we actually look at the data that is in the inflation statistics that is in the member's primary question I'd point out that the annual rent increases were 3.2 percent—not the number that the member gave—and 0.7 percent for the quarter. It is challenging for people at the moment in many parts of the economy. That's why the Government has stepped up and supported them."