National lived by Inflation, now they’ll die by inflation?

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.

 

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