Inflation: Why isn’t Adrian Orr doing a victory lap?
Inflation hits 30-year high of 5.9 per cent
National Party leader Christopher Luxon took aim at the Government’s “wasteful spending” after inflation hit a 30-year high of 5.9 per cent.
Consumer prices rose at the fastest pace since 1990, with inflation hitting 5.9 per cent at the end of 2021.
Figures from Statistics New Zealand released today show a further sharp lift in the cost of construction, petrol and rents pushed the consumer price index up 1.4 per cent in the final three months of the year.
The figures were roughly in line with expectations; a survey of economists forecasted inflation for 2022 would be 5.8 per cent.
The banks predicted 1.6% and it came in at 1.4% so why isn’t Adrian Orr doing a victory dance?
I believe it’s because he knows we simply dodged a bullet last quarter and that it is Q1 2022 when the shit hits the fan.
I argue it will be 10% by December.
- Russia launches an invasion of the Ukraine after the Winter Olympics while China simultaneously cracks down symbolically in Hong Kong or on Taiwan.
- Biden responds with enormous economic sanctions.
- Russia responds by giving Iran the last pieces they need for nuclear capability.
- Israel responds with a massive never before seen military strike on all Iranian nuclear assets which causes oil prices to explode and supply chains to freeze to a stand still.
- Inflation jumps to 10% in NZ.
When you weigh up the enormous threats to global security, you understand why Orr is silent.
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Meanwhile, here in New Zealand: Crops left to rot in the field because nobody in this government could be arsed to approve MIQ for about 190 heavy equipment operators who drive harvesters.
That’s where your 10% will come from – food inflation.
Is inflation a domestic phenomenon?
190 workers Andrew and where will all these workers and possibly family members live when we haven’t even got enough decent houses for NZers, but then you really don’t give a shit do you Andrew its all about money and businesses with you.
Oh so the smarts people have come to edumacate us about the inflation thing.
Wow.
I’m really starting to cheer t he E to asteroid now.
Do you mean to say that poorly educated people from countries with low wage economies are more capable of driving agricultural machines than NZers?
Don’t wages and conditions come into your calculations?
Obviously if producers find it is more profitable to let crops rot in the fields there is more than rotting crops that stink. After all, small market gardeners manage pretty well if the evidence of successful farmers markets and old style fruit and veg shops are any indication.
Damn – this was in reply to Andrew (above).
Nah, we just get better money in Australia. 🙂
It seems their business is just not viable, so they should get out and find some other occupations. That, I guess, is the capitalist way.
These machines are half a million dollar units not dinky toys .To operate them properly takes years of training and the operators move round the world as the crop comes to harvest time . They are highly paid but this Labour government are blind to the needs of business as it is not in their field of expertise. This is why we are still short of ICU nurses but allow in DJs
“and we are staring down the barrel of a 0.50%-0.75% increase”
0.50% to 0.75%, gosh, that’s not much. Orr should be congratulated..
I’ve been saying that about Hosking and Soper for years Frankie.
These machines are half a million dollar units not dinky toys .To operate them properly takes years of training and the operators move round the world as the crop comes to harvest time . They are highly paid but this Labour government are blind to the needs of business as it is not in their field of expertise. This is why we are still short of ICU nurses but allow in DJs