Food inflation surges – where is the economic growth people were promised?
Inflation hits 4.1%, highest in over two years
Inflation has risen 4.1% in the year to June, driven by a spike in petrol prices caused by the conflict in the Middle East.
It was the highest annual inflation rate in over two years.
Petrol was up 27.5% year-on-year, which contributed 23.5% to the inflation rise.
Electricity was up 12%, which contributed 8.4% to the overall rate. Diesel was up 71%, which contributed 7.7%.
Lower prices were recorded for oils and fats, which were down 9.1%, and real estate services which were down 4.6%.
According to Stats NZ, New Zealand’s inflation rate was higher than that of Australia, UK, US, and the European Union, but was below the OECD average of 4.6%.
Stats NZ prices and deflators spokesperson Nicola Growden said higher petrol prices accounted for “almost a quarter of the 4.1% annual increase”.
Some ‘encouraging numbers’ – Willis
TVNZ
Wait – WHAT?
Some encouraging news???
The Finance Minister is claiming the 4.1% inflation is a victory for her economic cuts and is the reason we must cut more, yet National are borrowing more than Labour did.
Is the Finance Minister confused or misleading?
When fuel prices soared during the war in Ukraine, National demanded accountability from Labour. Now they’re in Government, they’re asking Kiwis to accept the same inflationary pressures they once criticised.
That political hypocrisy matters!
Latest poverty stats out show 6.5% unemployment for Auckland, 11% for Māori, 11.5% for Pacifica, 19% youth unemployment, 51% of Māori households living with food insecurity and 860 000 kiwis living in relative poverty once housing costs are taken out, this is the collateral damage of National’s cutbacks!
The market is predicting two more OCR rate rises before the end of the year and the OECD recently put our wage growth as one of the lowest, there is no actual plan OTHER THAN cut backs!
Once again, most of the economists got it wrong with the majority predicting 4% and the Reserve Bank Governor herself predicting Inflation would peak at 3.9%!
When challenged on the impact of the Trump war on NZ inflation, the Prime Minister Chris Luxon told the Greens, and I quote – “‘I understand inflation, rest assured.’ With Inflation now at 4.1% does the Prime Minister understand inflation and should the rest of us be assured?
The Government’s ‘plan’ is to borrow more for tax cuts and corporate welfare while hollowing out public service budgets, sell $5m mansions to rich foreigners, arrest the homeless that they create and allow big polluters to do what they want.
Bernard Hockey makes the point NZ could have avoided the ‘Trump inflation’ if the Government had done something meaningful…
Willis blames ‘Trump spike’ for inflation jump to 4.1%, but it could have been avoided. Other countries used subsidies to soften cost-of-living shock & help central banks stop ‘second round’ effects
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