The government has hinted it may unveil more payments and support to combat the increasing cost of living, in the coming months.
Transport Minister Michael Wood says support will be targeted to those who need it Photo: RNZ / Angus Dreaver
New figures being released today were expected to show a rise in inflation to about 7.1 percent.
More expensive food, as well as higher building and household costs were driving inflation up.
On Sunday the government announced fuel tax cuts and public transport half price fares would be extended to next year.
Transport Minister Michael Wood, told Morning Report while the government couldn't control the fundamental drivers of inflation it could take some of the pressure off.
"We're clearly facing inflationary pressures that are mainly internationally driven, we see that in high rates and inflation all around the world."
He said further details of payments and supports will be made in the coming months.
"We know we can't take it away but we're going to do everything that we can, that's practical of a government, to take off some of the edges and to target support to people who need it."
Fuel tax and cheaper public transport were broader support, he said, while cost of living payments and winter energy payments were more targeted.
"And of course they're all much more targeted than big swinging tax cuts that our opponents propose."
He said fuel price margins were being closely monitored and hadn't increased.
However it would be unsustainable to continue the measures permanently, he said.
"We're clearly facing inflationary pressures that are mainly internationally driven" - Transport Minister Michael Wood
The National Party wants government to reprioritise its spending and boost immigration to tackle rising inflation.
National Party finance spokesperson Nicola Willis told Morning Report the government had not presented a plan to address the drivers of inflation.
"What happens when this is taken off - because Grant Robertson continues to say that will happen at some case."
Willis said the government should be doing more to tackle the drivers of domestic price rises.
Condensed immigration pathways and workplace shortages were making it difficult for businesses to get the workers they needed, she said.
"What is happening with inflation in our economy is there is a gap between the supple and demand. We have to address supply constraints in the economy.
"Number one supply constraint right now - a lack of workers.
"I also look at that potential addressing spending is adding to inflation, certainly that is the view of treasury, that additional spending by the government can put pressure on inflation and interest rates and we're concerned that the government has continued very elevated levels of spending."
A jobs tax, insurance levy and fair pay agreements would all add to inflation, she said.