Inflation increases to 2.7% – Stats NZ
Inflation has increased to a 12-month high of 2.7%, according to official figures out from Stats NZ today.
The increase in the 12 months to the June quarter followed a 2.5% increase in the 12 months to the March 2025 quarter.
“Although the annual inflation rate increased from the March 2025 quarter, it remains within the Reserve Bank of New Zealand’s target band of 1 to 3% – the fourth consecutive quarter it has done so,” Stats NZ prices and deflators spokesperson Nicola Growden said.
The largest contributor to annual inflation was local authority rates and payments, up 12.2%.
Cough. Cough.
This was Willis in an August 2024 press release celebrating the latest RBNZ rate cut.
“This Government has delivered on its promise to Kiwis – our careful and deliberate plan to get on top of inflation is working,”.
Right, so when inflation rises, that’s on National right?
When inflation went up under Labour (because of Covid), National were very quick to blame Labour (despite that money being spent on protecting everyone from a once in a century pandemic).
Sooooooooo, now inflation is rising, how come the Government aren’t getting blamed?
Because the Political Right are now are hilariously blaming council rates – rates they themselves have contributed the costs of by dumping 3 Waters and leaving water infrastructure costs to ratepayers alongside all the extra user pays charges central Government have forced upon everyone.
The NZCTU with some real analysis…
Data released by Statistics New Zealand today shows that the cost-of-living crisis is getting worse as inflation as measured by the Consumer Price Index rose annually to 2.7%, said NZCTU Te Kauae Kaimahi Economist Craig Renney.
“This marks the third straight quarter in which annual inflation has increased, up from 2.2% in December 2024. A key reason why inflation didn’t break out of the 1-3% target barrier is that petrol pricing was down. Excluding petrol, annual inflation was 3.2%,” said Renney.
“The data shows that prices rose most in areas that are particularly hard to manage for middle- and low-income groups. Household energy rose 9.1%, with gas prices rising 15.4%. Dairy and eggs rose 9.9%. Dwelling and contents insurance rose 10%. Rates are up 12.2%.
“This increase is likely to put further pressure on households, particularly those on the minimum wage – who received a pay rise of just 1.5% in April. When last measured, 48% of workers got a pay rise less than 2%, while 59% got a pay rise less of than 3%. It is these workers who are paying the price of the cost-of-living crisis.
“The Government has made a mess of the economy. Rents are still rising faster than general inflation, despite billions in tax breaks. Food pricing is rising at 4.2% despite the governments claims to be focused on supermarket competition. Workers are paying the price for the Government’s inaction.
“The economy is stumbling and is likely heading back to negative growth, and the Government has consistently cut investment. Trade tariffs and uncertainty are likely to add further concerns to growth. The cost of tertiary education rose significantly due to the removal of first year free – making it harder to access skills training during rising unemployment,” said Renney.
…the Governments privatisation and user pays agenda is what is driving costs up yet the they are getting away with it.
Business investment is now so weak that banks have not lent any net new money to non-landlord businesses and farmers since May last year. The Government’s decision to savagely cut infrastructure spending in 2024 has had an enormous knock on effect to the entire economy!
Those on higher incomes are benefiting from tax breaks and high term deposit rates are simply increasing their savings – household term deposits have risen by $25 billion since the election in 2023 – the rich got richer and the poor got poorer!
At some point voters have to appreciate they have been tricked into focusing on culture war grievance while this had right Government pass laws for their donors not you.
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.
Butter is $13.75 a kg wholesale at last auction .USA$7577 PER TONNE .So 500grm block is $6.75 wholesale before packaging and distribution .
So at $8.90 @ our New World it is a good buy.
3 percent would be cheered under a Labour government.
1.9% in 2019 trev
Trevor you and tighty Im not righty are financially illiterate. Take your blue tinted glasses off for just once in your life and see NZ today under the National party CoC, it is suffering. Are you cheering people’s suffering idiot?
All political parties promise things they have no ability to control. Then when it turns to custard revert to gargon like, facing headwinds. Well, those headwinds are swirling from all directions at present. I suspect there’s not a country around not grappling with inflation. Maybe it’s the new norm.
Economic wisdom tells us it’s a supply/demand thing. But surely more. What the Cov19 pandemic highlighted, other than interruption of supply chains, was opportunistic behaviour, a fair bit of price gauging. Sure, the cost of raw materials, the cost of labour or capital might go up, but those selling at the consumer end of the chain take the opportunity to increase their margins. After all if it not regulated, ultimately it’s worth what flok will pay for it.
Could be the current case with Fonterra and butter. Consumers are being told that its global demand. No doubt part of the tale, but hopefully that will be become a bit clearer in the next few days. Or maybe just plain old inflation.
1.9% in 2019 trev
CoC, yes please take up the hint and ‘die from your self imposed inflation’, the sooner the better for NZ. Hurry up; those of us who love NZ are sick to death of your BS and inability to run our country in an intelligent and cost effective manner. What’s stopping you – I know – your inflated egos! And the greed was never at Council level – it was, and still is, at the ‘wealth level’ – again wake up the “stupid” among you. How in the hell did so few make so much from ripping off those most in need?
The major pet project in Otautahi was that behemoth that now dominates the skyline of the city I live in. Was this a necessity no no no! But governments wanted it.
It’s not just the inflation rates in a mess, it’s the number of young people leaving when we have an aging population, the increase in homelessness, the huge increase in prison rates, the number of mentally ill people committing serious crime and being left to their own devices, the shortage of Police, GPs, clinicians and teachers. Then we have our trades people leaving, young people can’t get trades people to take them on to do their apprenticeships, polytechs in a mess and going to cost us millions just so national can get rid of centralisation and prove a point. Our country is in a fucken mess, and I haven’t mentioned the state of our public education as people think it’s all honky dory when it’s not. Lastly our social cohesion is eroding by the day with those clowns in power who are wreaking havoc on our beautiful country.
It’s not just the inflation rates in a mess, it’s the number of young people leaving when we have an aging population, the increase in homelessness, the huge increase in prison rates, the number of mentally ill people committing serious crime and being left to their own devices, the shortage of Police, GPs, clinicians and teachers. Then we have our trades people leaving, young people can’t get trades people to take them on to do their apprenticeships, polytechs in a mess and going to cost us millions just so national can get rid of centralisation and prove a point. Our country is in a fucken mess, and I haven’t mentioned the state of our public education as people think it’s all honky dory when it’s not. Lastly our social cohesion is eroding by the day with those clowns in power who are wreaking havoc on our beautiful country.
Under 3% is good given the international environment we are facing.
So when Labour had it at 1.9% in 2019 they were world leading.
I can’t remember you posting your gratitude then blacky?
Comments are closed.