Cost of living likely to dominate the agenda ahead of 7 November poll as centre-right National party battles to retain power

The prime minister, Christopher Luxon, has announced New Zealand’s next general election will be held on 7 November, kickstarting a campaign cycle that could become one of the country’s most contested in years.

On Wednesday, Luxon told reporters the National party would continue its agenda to “fix the basics and build the future”.

“In the lead up to the election, Kiwis will have to weigh up who is best placed to provide stable and strong government in a very volatile and uncertain world – a strong economy with responsible spending, lower taxes and more opportunity for you and your family,” Luxon said.

The economy and cost of living will be high on the agenda for the two major parties this year, with the issues consistently cited as two of the top concerns facing New Zealanders, according to the Ipsos New Zealand issues monitor.