A United Nations report is warning high rental prices are likely to limit progress on curbing New Zealand’s high inflation rate this year, meaning the cost of living crisis is not over yet.
The United Nations released its 2024 World Economic Situation and Prospects report last week which projects inflation in New Zealand to fall fairly gradually over the next 12 months.
The report said New Zealand’s inflation will remain “relatively high” in 2024 due to an acceleration in rental prices driven by housing supply shortages.
New Zealand’s consumer price index is projected to fall to 3.4 percent in 2024 before dropping to 2.6 percent in 2025.
Kiwis have been battling the cost of living crisis since 2021 with inflation currently remaining stubbornly high at 5.6 percent – more than double the Reserve Bank’s (RBNZ) target.
The UN’s consumer price forecasts are slightly behind what Treasury has predicted for when New Zealand will return to the RBNZ’s target band of 1-3 percent.
The NZ Economy in 2024 is dependent on the usual cheap exploitations we use to inflate economic data.
Mass immigration of exploitable migrant labour which generates enormous pressure on rentals, roading infrastructure and public services.
Hyper tourism that generates enormous climate change emissions and creates enormous drag on our infrastructure.
Basic Bitch primary exports dependent on a faltering Chinese economy.
And property speculation class war that sees the wealthy exploit the rental market.
Beyond these cheap exploitative measures, the economy is going no where and the market simply isn’t factoring in the full risks of extreme weather events and geopolitical destabilisation.
The cost of living crisis continues to rob the poor and the looming benefit sanctions and police crack downs alongside mass State Tenant evictions fuels a level of desperation that strangles an economy, it doesn’t protect it.
The Political Project of the Right is to starve the State of revenue so it doesn’t have to fund things the citizens want.
Underfund a public service, get complaints about that underfunded public service, cut that public service back further as the ‘solution’.
Meanwhile the mega wealthy will get tax breaks and property loopholes worth hundred of millions as corporations contribute to inflation by price gouging.
If you are rich, 2024 is another year laughing to the bank, if you are a renter, a worker, a beneficiary, working class, state tenant or one of the 600 000 who need food banks each month – you are fucked.
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