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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Martyn, the Rich & powerful & their Political Leaders can be brought to their knees & rendered useless, it is possible, it all depends on how proactive, clear eyed & militant you are prepared to be? Although this may seem to be a unlikely analogy, I look at what the Houthi’s of Yemen are doing, they are a poor Nation but have managed to kneecap the mighty US Empire, it’s Military & it’s Allies in the Red Sea & forced Global shipping to travel the long way around the Horn of Africa costing millions of dollars because they have taken advantage of their choke points in the straits of the Red sea? We also have the capacity & capability, not by Military means to do what the Houthis have done, but to be just as disruptive, annoying & a major pain in the ass to the ruling Elites & Political class, not by violent means, but Civil & Mass disobedience means to discover & shut down the choke points in our Political System in order to get what we want? But first we need a clear objective in what we hope to accomplish? With the Houthi’s, their Goal is to stop the genocidal Israelis in Gaza so as to force a Ceasefire! Their Plan to achieve this is by disrupting Global shipping which they are doing via choking off the Red Sea? With us, our Goal must be to stop this Rightwing Govt from destroying our basic Human needs of being fed, housed & the other basics & Worker rights? Our Plan must be equally as disruptive as the Houthi’s but not by violence, but by means of mass disruptions like shutting down Motorways & other civil disobedience, we must discover our chokepoints to bring this Govt to it’s knees to force them to acquiesce to our reasonable demands? The word Sabotage comes from a French word in which French workers threw their shoes into the Machine Looms to hobble & shutdown the Factory Machinery in protest of the denial of their Workers rights? The Houthi’s are showing what can be done to bring the Global Shipping machinery to a standstill via drones rather than shoes? Where there’s a Will there’s a Way & the small, poor & seemingly insignificant can ultimately triumph over the Powerful if the Fighting desire & persistence is there to complete any goal but we must have a Plan & the vision to follow through to achieve the ultimate goal of what we hope to accomplish, just like the Houthi have provided a unlikely example?
Antforce62 – Very cool…The issue I have is both Labour and the current Government Economic policies are very, very similar…
@ nat. We’ve had a mono-political disaster called neo-liberalism for 40 years now and you’re only just beginning to notice? You must be fun to share a jigsaw puzzle with.
Neo-liberalism was merely a way for a few in the know to take our taxes paid for shit then sell it to others who could then rent it back to us. Thus double-bubble you dumb fucking baby. But then you’re not dumb though, are you.
You’re cunning as a shit house rat and the challenge now is to get enough people to take notice, to take action and demand a royal commission of inquiry into and up the hog sniffing rogergnome and his seedy disciples of greed is good.