The newly crowned Prime Minister Chris Hipkins has fronted his first post-Cabinet press conference and in the wake of fresh consumers price index data being released.

The CPI, which records changes in the price of goods and services, increased 7.2 per cent in the 12 months to December 2022, Stats NZ said today.

It comes alongside Jacinda Ardern’s official resignation as Prime Minister after she attended her last event in the role yesterday when she travelled north for annual Rātana celebrations.

Prime Minister Chris Hipkins said he “took the baton of responsibility” from Jacinda Ardern this morning.

He said it was an “immensely proud moment for both of us and our families”.

Hipkins said “reprioritisation” of the Government’s work was the “absolute priority”. This would give allow the Government to focus on the “cost of living”.

New Prime Minister Chris Hipkins speaks at his first post-Cabinet press conference.

“Today’s unchanged inflation figure confirms this is the right immediate focus”.

“The inflation level that we are seeing is not unexpected,” Hipkins said, and that it was not higher than “many economies around the world”.

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 “The Treasury is forecasting real government consumption will fall by 8.2 per cent over the next couple of years which they say indicates that fiscal policy is supporting monetary policy.”

Hipkins said he will meet Auckland businesses tomorrow and expects immigration to come up in discussions.

“One of the main topics I’ve expected to come up is the global labour shortage. IT continues to put additional pressure on those New Zealand businesses,” he said.

Hipkins said the Government had already made immigration changes, including to nurses and bus drivers.

On Friday the new PM will be discussing the Cabinet reshuffle with ministers.

Hipkins said the cost of living “is the number one issue that we are facing as a country, and therefore it will be the number one focus of the government.”

Hipkins would not give a target for inflation that he wanted to hit. He said the Reserve Bank’s target of 1-3 per cent was the target.

“We will do everything we can to bring inflation down in New Zealand. We will also be seeking to support New Zealanders.”

Asked whether he would overturn Jacinda Ardern’s promise not to implement a capital gains tax or to not raise the NZ Super age, Hipkins said: “I will honour the commitments that have been made for this term of Parliament.”

“I’m not ruling that in or out today either,” Hipkins said, when asked if he would extend the fuel tax cuts which are set to expire.

Hipkins said he had regular conversations about Willie Jackson, when asked about the MP’s future. “Willie is an absolutely passionate advocate for Maori.”

“I have a lifelong commitment to quality public services for New Zealanders,” Hipkins said.

Hipkins said the government hasn’t built the right number of houses to keep up with growth.

“I want to acknowledge one of the pressures that New Zealand and Australia are feeling around grocery pressures is to do with the weather,” he said.

“There is a limited amount that governments can do. I absolutely acknowledge the pressure that Kiwi families are feeling. We are not starting from zero. We have done a lot in the last year or so.”

Hipkins said he would not get into announcing tax policy today.

He said the Covid-19 isolation requirements were being regularly reviewed. They were last reviewed before Christmas and will be reviewed shortly.

“I would certainly encourage people to follow the rules. The 7-day isolation period is designed to stop more people from becoming sick in the first place.”

Hipkins acknowledged the passing of Maori activist Titewhai Harawira and said he wants to “extend [his] aroha to her whanau” but “didn’t know her well and will not claim to”.

Asked about ram raids, Hipkins said he would still take an “active interest” in the portfolio.

“There is a lot we can do within the existing law. I don’t think the existing laws have been used to the full extent possible,” Hipkins said.

On the death of Kiwi aid worker Andrew Bagshaw, Hipkins said he was aware of the situation and “extended [his] condolences to his family in what must be a very, very difficult time for them”.

Hipkins has not spoken to any other world leaders since it was announced he would become prime minister. The only leader he has spoken to is Australian Prime Minister Anthony Albanese.

In regard to inflation relief, Hipkins said he doesn’t want to speculate on what may or may not be decided in the coming weeks or months.

“We need to take a bit more time to articulate what we are doing and why we are doing it,” he said of co-governance.

Hipkins said he does not intend to re-visit existing co-governance arrangements. “I made a commitment yesterday and it was an easy commitment to make, to never use race relations to divide New Zealanders.”

Sir Ashley Bloomfield offered his congratulations to Chris Hipkins.

“I also congratulated him about his well-deserved honour. I said his eyebrows had helped to get me here,” Hipkins said, referencing Bloomfield’s response to his “spread your legs” gaffe.

Hipkins formally became New Zealand’s 41st Prime Minister when it was confirmed by Governor-General Dame Cindy Kiro at Government House in Wellington this morning. Carmel Sepuloni was also sworn in as Deputy Prime Minister.

On Sunday, Hipkins said he would be having discussions with ministers this week ahead of announcements on a Cabinet reshuffle next week.

The CPI data followed months of high inflation where prices frequently rose faster than at any time since the early 1990s.

The 7.2 per cent increase follows another 7.2 per cent annual increase in the September 2022 quarter, and a 7.3 per cent increase in the June 2022 quarter.

Housing and household utilities were the biggest contributors to the December 2022 annual inflation rate.

Chris Hipkins has been sworn-in as NZ's 41st Prime Minister in a ceremony at Government House. Photo / Mark Mitchell

That was due to rising prices for both constructing and renting housing.

“Higher prices for ready-to-eat food, vegetables, and meat and poultry drove the overall increase in food prices,” Stats NZ said.

Transport was the next largest contributor, driven by rising prices for both international and domestic air fares.

The New Zealand dollar briefly rallied by about a quarter of a US cent on the back of the news.

In the minutes following the 10.45 am release, the Kiwi shot up to US65.23 cents from US65.0 cents. The currency later settled back to US65.08c. Wholesale interest rates were little changed.

With Wellington basking in sunshine, Ardern left the Beehive for the final time as Prime Minister, greeted on the Parliamentary forecourt by a huge crowd that erupted into loud cheers this morning.

The 42-year-old, who has led the country since 2017, hugged each member of her caucus who gave her a guard of honour, lining up outside parliament to see her off. She was joined by fiance Clarke Gayford.

Hundreds of Kiwis lined the pavements of parliament to catch one last glimpse of Ardern as she made her final public appearance as Prime Minister.

Colleagues farewelled her with gratitude, many visibly emotional. “I can’t actually see where the car is,” said Ardern as she moved through the crowd, most of them staff who’d worked with her.