The Finance Minister has councils and rates rises in the cross-hairs

Stats NZ figures out today show the Consumer Price Index rose 2.7 percent year-on-year to June.

That's lower than economists' expectations, but still the highest annual rate in 12 months.

Nicola Willis for many, a big part of the latest inflation increase was council rates.

She says the Government is exploring rates caps, because councils have a number of tools for raising finance to fund development, which the Government has worked vigilantly to provide.