Food inflation hits 12.1% – why it will go up again

By
Martyn Bradbury
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56
903

Cost of living: Annual food prices rise 12.1 per cent – but has food price inflation peaked?

Food prices increased 12.1 per cent in the year to May 2023, Stats NZ said today.

We were very luck that it has come in under last months 12.5% but the real challenge will be August.

At the end of this month the 25cent fuel subsidy will be reapplied and that will impact every single cost.

The silver lining on oil prices is that the Chinese economy has spluttered and is failing and so isn’t using as much oil which is lowering global demand, despite OPEC production cuts.

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This becomes way more problematic if OPEC make steeper production cuts to match China’s slowdown.

Either way, petrol inflation which has tempered inflationary pressures is about to reignite.

Food inflation will peak going into the election and that is going to be an enormous political headache for the Government.

 

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56 COMMENTS

  1. How can the government possibly go into the election without promising to totally subsidise/scrap increased costs for farmers (e.g. the Primary Sector C.A.P., a.k.a. the ‘Canoe Embarkment’)?

    It is already known that both political parties are ideologically incapable of solving the unpayable debt, aside from resorting to currency devaluation (i.e. an inflationary policy). But the idea that they can also deliberately raise production costs for food, and then still win an election, seems like total madness.

  2. It would help if the West wasn’t shooting itself in the foot with all its stupid embargoes against Russia. The US and friends obviously thought it would only be a matter of time before they had free and cheap access to the huge amount of mineral etc wealth that is contained within Russia as the federation fell apart and it engineered colour revolutions to break the continent into easily manipulated small countries. But it doesn’t look like that is going to happen now and the West is stuck with depriving itself of all these.

  3. “At the end of this month the 25cent fuel subsidy will be reapplied and that will impact every single cost.”

    100% Martyn. Just in time to rub it in for the election. 🙂

    Remember: If you vote for stupid people, you get stupid results: And here we are!

  4. Problem is, if central government tried to regulate it, supermarkets would loophole right through it. This is nothing new. There are documented issues with grocery prices going back to the nineties. Why do you think investors that were worth half a million then are worth eight, ten, twelve times that now?

  5. “Food inflation will peak going into the election and that is going to be an enormous political headache for the Government”.

    No worries, they will just pretend it doesnt exist just like every other issue this year. And they will be golden as the MSM probably wont say much (anything?) about it.

  6. Either that or it will give them a great opportunity to announce a wonderful ‘hail mary’ pass that will get the voters onside.

  7. Our domestic food inflation and security is harmed by our own government department of dumb-dumbs at MPI still being consistently incompetent. The border incursions of nasties eg: MBovis, that tomato thingee – are just plain embarrassing. That’s why no one is discussing the real threat to our economy- the worst of the worst food security/animal welfare nightmares is simply only a boat load of Palm Kernel Expeller away, poorly audited, unnecessarily imported from Indonesia and Malaysia; for which no real actionable plan is in place. Ticking time bomb. Get your garden growing folks.

  8. Interest rates will hike to 8-10%. Orr has to respond (even if he just mirrors what US Fed Chairman Powell is doing). Speaking of inflation, why are there no (potentially criminal) hearings regarding the lockdowns, mandates, and blatant disregard for the 1990 Bill of Rights Act during the covid pandemic that lead to this nightmare situation? Don’t use the excuse of “following the science”, the only “science” these people followed was Anthony Fauci (who has his finger in every orifice of the pandemic, from the origin to the “cure”) and Big Pharma.

  9. Freezing/cutting the min. wage, healthcare spending or anything else wont cause food prices to drop one bit.

  10. I think no matter who is going for Government this is the hardest thing they will need to convince NZ they can deal with.
    Greens – take more from a small pie and give to all.
    ACT – take more from a small pie and give to a few,
    Labour – Is there a pie – should be a sausage roll.
    National – make the pie bigger but sharing could be hard.
    Maori Party – We’ll eat all the pies.

  11. Jacinda quit just in time, no doubt she will be thinking of impoverished kids when she gets a million for her book deal, selling her damehood to rake in even more and thinking about those impoverished kids in her previous life.

    • Brilliant mind that of Jacinda. Knowing when to go just like JK knew when to go when closing the wage gap with Australia and leaving us with a brighter future….oh wait?

Comments are closed.