TDB has argued inflation has not peaked, that the global economy is warping and late stage capitalism exacerbated by catastrophic climate change will need a cup of tea and a lie down.
Food inflation just hit 12.5%
Food prices soar 12.5% annually – largest increase since 1987
The new figures from Stats NZ compared prices in April 2023 with the same month last year.
“The 12.5 percent annual increase in April 2023 was the largest since September 1987 which included the introduction of GST in 1986,” consumer prices manager James Mitchell said.
Grocery food prices were up 14%.
“Increasing prices for barn or cage-raised eggs, potato chips, and 6-pack yoghurt were the largest drivers within grocery food,” Mitchell said. “These were the same drivers for grocery food last month.”
Last month’s annual increase was 12.1%.
Mitchell said in today’s announcement fruit and vegetables prices increased by 22.5%, restaurant meals and ready-to-eat food prices increased by 9%, meat, poultry, and fish prices increased by 9.5% and non-alcoholic beverage prices increased by 8%.
“The second-largest contributor to the annual movement was fruit and vegetables. The increase was driven by tomatoes, avocados, and potatoes.
…Culture War fights make all the noise, but poor people aren’t sitting around the kitchen table cancelling people for misusing pronouns, they are trying to work out how to pay the bills!
Bread and Butter cost of living pressures are what the electorate want answers to, and that’s where the Left need to step up and push universal policy that lifts that cost from the people.
The Commerce Commission is clear that the Supermarket Duopoly should be broken up and the State should step in and provide that competition.
We need year long maternity leave.
We need a nationalised Early Education Sector that provides free childcare for children under 5.
We need free public transport.
We need free breakfast and lunches in schools.
We need free dental.
We need 50 000 new State Houses.
We need more hospitals, more schools and a Teachers aid in every class room.
We need climate change adaptation and a resilient rebuilt infrastructure.
We need all these things and we need to fund them by taxing the rich who the IRD clearly showed were rigging the system.
That requires political courage.
The food inflation will be worse next month, and the month after that.
Here’s a prediction for a storm to hit NZ next week…
…extreme climate event after extreme climate event, ever destroying the repair we’ve barely managed between events, plus ever spiralling inflation, plus the 25cent fuel subsidy coming off next month, plus staggering mortgage increases are generating a fear and anger not seen in the electorate before.
Voters want solutions, the Left have to step up and actually provide them if they want to win.
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The Banks are the ones with all the money some how they’re going to have to issue more loans for productive purposes.
All the easy stuff has been done. We’ll get there quicker if people open up knew businesses or get a second job. Got to get the money to where it’s needed urgently.
You’re right Sam, but few would invest in productive capital plan in this country at the moment.
Remember – money is mobile and so are the people that own lots of it.
You probably think that mobile money will ” trickle down”.
You have so much to learn.
What a naive Simplist view.
We need
We need
We need.
Yet you want the same bludy Gummint.
Look behind many price rises and you see the hand of government.
Increased price of Eggs. Government regulation no cage eggs
Increased Rents. Government regulation causing rentals to be sold.
Increased Veggie prices. Government regulation causing labour shortage and rotten fruit not picked.
SOCIALISM doesnt work!!!
Why do you think China/Vietnam introduced capitalism/free market
To get 100 Million out of Poverty
Capitalism in china and Vietnam is heavily regulated Ra, unlike here.
Difference being you would be told to put your price down end of story.
“Look behind many price rises and you see the hand of government.”
Inflation is a global issue, helped somewhat by the pandemic and Russia/Ukraine war. But look behind the hand of government and you’ll see big money interests manipulating affairs. There are few governments today that are not being led a merry dance by the billionaire class….
The inflation will only end if the unsustainable debts are bailed out, and rates are normalised (at least a 2% real rate, no more Fed currency creation, and raising reserve requirements).
Prices will stop rising, but to make them fall without destroying living standards, you have to increase production of goods: new local factories and local farms (which nobody is even proposing).
Even though real rates are still negative, the bank failures have already started.
The central banks, who are still unwilling to simply write off all the unpayable debt, will be forced to cut rates to prevent mass defaults and a huge 1929-style collapse, complete with riots and a new Hooverville.
Their only option left will be to inflate away the debt (and force institutions to hold the old, low-yielding paper).
Once the Fed has devalued the currency, and used the newly-created paper currency (bank reserve certificates) to buy bonds off the banks (thus lowering rates), it will become inflation as soon as those reserves are lent out (because the amount of paper currency in circulation has risen).
Prices will rise and real wages will fall, which is what the central banks are likely aiming for.
Taxing the rich will not get enough money to pay for all the needs and wants on your list which are all valid. We need to start drilling for oil and gas again and the government needs to stop wasting money and productivity needs to be aided by removing unnecessary controls which are holding back firms .
We should have a tax system that doesn’t put all of the burden on salary and wages and gst, regardless of your individual wealth.
Trevor who is we? Who will drill for oil (which we are doing)? We have the most profitable banks in the world but does that fill our coffers? What makes you think private wealth translates to public infrastructure? It doesn’t by itself
Agree a political response is crucial.
We all have our chance in October to deliver that political response.
Worst. Government. Ever.
Worst. Government. Ever.
N A T I O N A L
I’m predicting continued interest rate hikes to at least 8%. Why? Core inflation data combined producer inflation data combined with history combined with gut feeling. The Reserve Bank can’t announce that’s where it’s going right now, because it will utterly collapse the capital markets immediately. But I’m becoming increasingly confident that is where it’s heading. Buckle up, because people will not be able to make mortgage payments predicated on 4.5% interest for 30 years that are soon going to be north of 10%.
The political response is more money to the military because the people do not matter. Only the powerful matter, the people on the other hand, they are ignorant and spineless, they don’t matter…to the politicians of the Western world.
Ask fruit and vege growers if they received higher prices at farm gate. No they didn’t. Sitting between the supermarket duopoly and growers is another duopoly of wholesale fruit and vege markets that escape attention from media and politicians.
I would say that most of your solutions would further boost inflation. Certainly in the short to medium term.
In my experience inflation requires reducing demand, not increasing it.
In short, less government spending, not more; pay rises that are less than inflation, not higher. It is tough medicine but it works. Typically it takes a year or two to take effect. Usually follows by a period of sustained growth. Politically it is easiest done in the year after the election. More frequently done by conservative governments because it requires saying “no”, instead of “yes”.
We need, we need, we need……. any suggestions on how we are going to provide these things??
What ‘we need’ is greater productivity, more people working and paying tax. I dont have the answers to those questions but I’m not hearing any politicians talking about these things which is disappointing. We are making things more difficult than ever for business and I don’t believe our unemployment statistics at all. We have a class of people who don’t want to work and don’t have to because the rest of us a paying for them. I’m more than willing to pay more fair share to those in need but Im sick of paying for those who could and should be working.
And don’t start me on the amount of money that has been wasted by this government that would pay for a good chunk of your ‘we need’ lost!
The most important issue facing NZ is that our government is frozen staring at the encroaching problems. And there is no alternative government as that is choking with big lumps of trivia.
We were having a discussion the other day about hiring and the sort of money being requested by applicants now.
Some of the numbers may seem crazy for the roles yet the reality is, NZ is now an expensive place to live and more & more working people are failing to share in the rewards.
The problem isn’t greed, we aren’t paying enough for the changed world.
When the Left talk of taxing the rich they ignore the 1% and keep going after higher paid employees, many of whom aren’t living a life of milk & honey anymore. God knows how blue collar workers survive without pulling crazy hours, which brings other social costs.
On top of that, Labour stubbornly to move the tax brackets and are concentrating on identity politics BS rather than their core base.
I want to vote Left but not this lot, I wish we had an old-school worker’s party.
Yes CeeJ, we need a union movement and union leadership to demand redistribution of wealth, the end of neo-liberalism, and an end to the ridiculous privatisation and contracting out of public services, which enable foreign investors to make profits from public funding. Where is the CTU voice? Does it stand for Couldn’t Turn Up? Time for a national strike.
Bring on the bread queues!
It’s not as if this has ever happened under Socialism….
Those Who Do Not Learn History Are Doomed To Repeat It
And if you are on (or just below) the average wage and get a pay increase of 12.5% (dream on) then your NET OF TAX pay will be about $20 per week short of increasing by 12.5%. So that’s a tax increase on the poor. Way to go Labour.
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