Inflation went from 7.2 to 6.7 and the Peakers are out in force claiming inflation has been tamed and we can all get back to the orgy of capitalism ficklest we all know and love.
These Peakers are wrong!
Dig into the numbers, food inflation is exploding above 20%, the drop was due to petrol prices down over 8%.
This was driven by Biden tapping his oil reserves to bring in global price stabilisation.
OPEC responded by announcing global cuts which take effect next month in May.
This at the very same time as the Government’s subsidy comes off petrol prices.
What this all means, is that as the full impact of the cyclone on horticultural industry hits food prices, we will have a spike in petrol prices.
Orr will raise by another 50 points because he knows what is coming.
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Yes, there is more pain to come unfortunately but it is a necessary cleansing of sorts. Another 50 basis point rise is sensible.
New Zealand trades its best oil and gas for cheaper energy abroad, banned new oil and gas exploration and don’t have any ambition to replace or increase energy generation to meet demand. New Zealand energy policy is insane.
I am always worried when I agree with you Sam but I do on the banning of oil and gas exploration . We need the income they would generate.
Globalism is collapsing into economic regionalism not unlike the Old World empire monopolies. Lots of inflation pressure to come.
At least the flood gates of immigration are swung wide open again. House prices will stabilize? Worker bee population expansion will Grow The Economy*TM. Pre plague years Boomer Utopia back in operation!
Yes the right can scream from the rafters all they like but it’s the right thing to do.
Good point Martyn!
So you think Robinson will put the tax back on this close to an election?
That may be the final ‘coupe de grace’ for This government.
Not to mention that if we receive a downgrade from the rating agencies (a distinct possibility given the state of our economy) our dollar will weaken pushing up the price of imports, which is pretty much everything we consume these days.
Sod Mr Orr and the monetarist Reserve Bank Act.
The “invisible hand” of the market was exposed as capital and finance capital’s dirty little secret years ago.
TV One 6pm News last Wednesday the presenter read out the announcement that inflation is going down but expect prices to still keep going up. They said this bullshit with a straight face.
There is only one kind of inflation that business leaders and capitalist economists concern themselves with, and that is “wage inflation”, because it cuts into profit margins.
Price inflation on the other hand not so much, because price inflation “encourages growth”. Encouraging growth is the more PC euphemism for encouraging, or increasing profits.
Agree. He has to raise. As long as you can borrow for tangibly less than inflation, the prices will continue to rise. e.g. If you’re a business owner that borrows for new stock (which is how it’s done in the current environment), when the cost of borrowing is less than what you expect to pay for the same items in a few months you will continue to do that. This stokes further inflation, since it puts additional pressures on supply. There is no downside to paying 6% interest on a loan to buy an item that has 10%+ inflation.
So inflation went from 7% to 7%? Carry on with your tinkering and denials Labour if it makes you feel better.
Try not to sound so disappointed Martyn. It may not have peaked but it’s not exactly terrible news that it’s slowed. It’s like Orr is going stop hiking.
Let’s watch what Nationals imported slave labour will do to prices next year. Probably just improve margins as they cut though that imaginary red tape ( for pesky little things like drinkable water)
Capitalism, what a uncaring cancer,its profit exploit.
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