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 Zealandβs 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’ β 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 MΔori, 11.5% for Pacifica, 19% youth unemployment, 51% of MΔori 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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If the govt whatever stripe wants to cut something remove gst on food which would reduce the ques at food banks.
It would provide a $4billion stimulis to kick start demand in the recessioned, city economies.
NO GST ON FOOD!
Growth was 4.3% in 2021 under higher inflation pressure than currently .The only growth we have seen from this government is in poverty ,unemployment ,underemployment and people living on the streets .
Willis on radio yesterday pleading that it wasn’t her government’s fault that inflation had spiked because they weren’t responsible for Trump’s war and the fuel price rises it caused. In fact, it showed how well they were doing because under Labour it was 12% she falsely claimed.
Inflation was already at 4% before the Iran war even started and most economists are predicting that we haven’t yet seen most of the price rises yet. The next inflation figures will be telling.
This CoC is so busy continuing to play the ‘blame game’, they’re incapable of any form of honesty. I believe on TVNZ1 news last night they blamed Trump’s war and Iran blocking the strait for the dreadful state of NZ’s economy! There has been absolutely no accountability from National et al re the price increases of food, rentals, electricity, water, transport, rates etc. just more pathetic excuses. Again who in the hell would vote for them to go back in? You would have to be as insane as they are! Nicola stop playing games β most of us are intelligent people, not your greedy, grasping RW enablers!
I will vote for National as they have done a better job of running. the economy than Labour did There are things they have done both on their own bat and moves caused by Coalition agreements that I do not agree with but that is the name of tye game. I fear the way the country would go under a Coalition including Greens and TPM
Trevor they have not done a better job. People like you go on about government debt but then praise a government who borrowed more than the last for nothing other than a tax break to people who do not need it. What a hypocrite
So what has willis invested in over the last 2.5 years .NOTHING .wHERE ARE THE NEW FERRIES THAT WERE TO BE DELIVERED THIS YEAR ?