Luxon Survives Leadership Challenge Amid Tight NZ Election Contest

New Zealand Prime Minister Christopher Luxon has survived his second leadership challenge in four months, but the tight race ahead of the country's General Election on November 7 is putting pressure on his National Party.

Luxon called a meeting with his caucus after speculation over his leadership following a series of political missteps and clashes, including his 'parent-child' comment about businesses and his proposal to hold a referendum on the Mixed-Member Proportional (MMP) electoral system if re-elected.

The National Party faces a highly competitive election contest, with recent polls showing its support rate at 31% and the opposition Labor Party's support rate at 30%, according to a Taxpayers' Union-Curia poll and a 1News Verian poll released on August 7 and Wednesday respectively. Luxon's preferred Prime Minister rating fell one point to 17%, while a Radio New Zealand-Reid Research poll in July put National's support rate at 28.7%.

New Zealand's economy is under pressure, with annual inflation rising to 4.1% in the June quarter above the Reserve Bank's target range of 1-3%. The government is also facing criticism over its handling of public services and spending.