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.
Increasingly having independent opinion in a mainstream media environment which mostly echo one another has become more important than ever, so if you value having an independent voice – please donate here.
If you can’t contribute but want to help, please always feel free to share our blogs on social media
I’ll go with your punt on this one. The shit will hit the fan in a big way. Unfortunately for you Martyn, it will most likely mean a change of govt. Fret not my friend, Luxon will save all from evil hahahahaha not.
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.
Absolutely Sam we have to be self sufficient in Energy & that includes Oil & Gas!
It’s insane that’s for sure,but most policy under this Labour Government is insane.We have a Prime Minister who cannot define “woman.”
These adolescents must be replaced before they wreck everything.
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!
Globalism is here to stay. One cannot untangle an economic soup into its components.
We should at least own our immigration policies.
But how will the post boomers achieve this within Woke.
One plus one is two. … Anyone who think knowing this makes them smart is deluded.
Orr has acted in a way that demonstrates that he thinks he knows what one plus one adds up to, as many others in authority today they seem to think this makes them exceptional.
Having food to eat is a human right. Lifting the cash rate even further hurts those who need food and restrict very few who have the cash to buy new assets. Being smug about knowing that 1+1=2 is not just not good enough right now.
Orr is simply making borrowing more expensive. All those bond holdings are worthless. Anyone exposed to bonds which is every bank on the planet will be selling for at least a 70% loss. That’s always been the lefts desire. Raise rates and make it expensive to defraud the public into another financial crash.
Bonds worthless? Or bonds worth less? Very different things.
If one bought a bond that would return your investment in X years for a specified return on investment and inflation runs at a value higher than the set rate of return the value of the bond drops, sure. But 70%…. Surely not.
If inflation is going to run a 8% per annum for the investment period and the set rate of return for the bond was 2% per annum one will be “out of pocket” at the rate of 6% per annum.
There is another medication for our current predicament.
Allow the dollar to drop.
At least that will punish those on low and fixed incomes less than increasing the cash rate.
Yes the right can scream from the rafters all they like but it’s the right thing to do.
Why is this the right thing to do from a left perspective?
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.
The NZ dollars has surprised me.
Orr is working hard to protect our currency. Who benefits most?
IMO this is a mistake and our trade deficit says as much.
I have seen the NZ dollar in the low $0.40’s and closing in on $0.80.
I think the country and those on low incomes will do better if the $NZ is below $0.50.
Wait till Luxon & the NACTZI’s take over, then you’ll get STAGFLATION, which is High Inflation & High Unemployment at the same time & Orr will rejoice!
oh wow, and it will be Nationals fault, for not inheriting a better economy from Labour. lol……..
Frankly at this stage i come to the conclusion that no matter what happens, L will blame N, N will blame L and the rest of the country is homeless and hungry but partisan shills will have had their fill.
National always inherits a Economy in better shape than the mess they leave Labour with, after the Nats leave Office? Thats a given & a confirmed FACT!
Nope.
Look at the metrics from 2008 through to 2014 if you dare.
Look at the real life experience of those on low incomes since 2015 if you dare.
And why would that be the case?
Imported inflation is falling,domestic inflation is not.
Another 50 basis points is most likely.
I think you are probably right.
But I think Orr will be wrong if he does that.
Time to allow the NZ dollar to move lower and to stop punishing those who can least afford the medicine.
https://www.nzherald.co.nz/business/the-big-inflation-number-have-price-hikes-peaked/IONZRQFMQRGYLGL3S7PVXJCZ2Y/
Bob the liar
Bob the bull shitter
Bob the right wing troll
Bob is arguing that based on the track record of Orr and that on the basis that domestic inflation is continue to spiral upwards that the only way to get inflation under control will be for the RB to increase the cash rate further.
Following the GSF that was what occurred and then in around 2014 we ended up with pretty solid surpluses on the back of a lot of pain and a NZ$ nearly at parity with the American $.
Some people are so silly it’s difficult to comprehend.
NSC you obviously don’t have the knowledge to interpret the figures but that comes as no surprise.
Your post is utterly pathetic and make you look like a 5 year old.
So you agree with dumb Bob’s lie even though I have shown a link to debunk his outrageous right wing lie?
Jesus Peter you’ve gone all woke and it is you who is pathetic but nothing unusual for you.
You are unable to understand the link you posted.
Good heavens NSC.
No. He just read the entire article that you shared with us.
Very well said Peter.
NSC you fail to understand tradable and nontradable.
( No surprises there.)
Got to keep the unruly masses ruly lest they get really upset. So what is another lie?
Buying food is a bloody human right.
If there is any humanity sitting on the Reserve Bank Board they will cut the interest rate by a token amount.
No-one in his right mind will spend his own and especially not borrowed money right now.
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.
Martyn – I truly hope you are wrong…but, I reckon you could be right
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.
Ridiculous comments.
You were making sense until your concluding paragraph.
They got to keep the punters happy, someone gots to vote for them after all. As for inflation, wait until the subsidy for gasoline is cut off.
Lil ole NZ has no oil refinery anymore! Fuel, diesel in in-particular, has to be imported. As we all know. If the cost of diesel goes up, everything goes up!
Inflation and CPI for NZders are now a permanent thing! Day in and day out! Week by week, month by month year by year!!
And for those moaning about it. This is what you get with a fuckwit government and MMT!
Also, again, those moaning about the recent deficit numbers of around -$33b. $11.4b of it was for ‘cars & vehicles’ mainly ‘luxury’ brands mostly ‘EVs’ Who is really worried about saving the planet?? Not the whingy whiny muddle class proto-fascist greenie granny bashing cis-mis-them-they-porangi folks of the flood-ridden leafy burbs!
The sooner we hook up with the BRIICS+ the better.
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)
name 1 developed country where increasing interest rates has brought down inflation….just one
This is just a guess, but Never Never Land.
Capitalism, what a uncaring cancer,its profit exploit.
The opposite from capitalism is not a cancer, caring and does not exploit?