Inflation NZ

2022 - 4 - 21

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Image courtesy of "Stuff.co.nz"

Big pay rises not likely to follow NZ's jump in inflation, economists warn (Stuff.co.nz)

Bernard Hickey says encouraging some firms to reduce price hikes could help soaring cost of living prices. Now might seem a great time to negotiate a wage rise, ...

And at the moment they’re not.” Reserve Bank Governor Adrian Orr said earlier this week that all central banks faced the challenge of keeping a lid on inflation expectations without creating a recession. A lot of people were instead negotiating working from home benefits, or in effect fewer hours and more flexible conditions. “They’re talking a lot about inflation expectations and trying to stop high inflation expectations becoming embedded, which is the first signs of a spiral.” “I think we’ve seen enough in terms of both actions and rhetoric from the Reserve Bank in the last week-and-a-half to say they’re focused on making sure we don’t see a wage-price spiral,” Jones said. “I think we’re going to see a period of high inflation, I don’t think we’re going to see wages come up enough to drive that inflation - I think it's more the supply chain problems, global catastrophes and wars,” he said.

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Image courtesy of "Stuff.co.nz"

Households juggle budgets to stretch the dollars as inflation bites (Stuff.co.nz)

Finance Minister Grant Robertson says some Government moves have kept inflation lower, even though it has hit a 30-year high. Larissa Emmerson has a passion for ...

We helped rally neighbours to rebuild a beloved vege garden accidentally destroyed. We waded into flooding when our city was deluged. Many said they had changed their shopping habits, including putting frozen instead of fresh vegetables in the trolley, buying cheese only once a month, padding out the grocery list with “cheap staples”, and buying a fortnightly produce box. For the past year she has bought only second-hand clothes “except for underwear” and has been happy with the results. Emmerson thinks some people are unaware of what is available in the form of the Working for Families tax credit, and subsidies for costs including childcare, dental work, and home insulation. Emmerson said she feels “very passionate about trying to be creative with the budget” and the family hasn’t had to go without.

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Image courtesy of "The Spinoff"

Inflation is a global problem, but there's still plenty the Beehive could ... (The Spinoff)

Government spending isn't the culprit. It's the soaring cost of food, petrol prices, building materials and the increase in council rates. There's no ...

For a long time, New Zealand had one of the most credible inflation targeting regimes in the world. The bank is responsible for the national economy and, according to Crampton, it owns some of the current situation. There’s one country that threatens to torpedo the government’s claim that it couldn’t have done things differently: Australia. Inflation across the Tasman is only running at 3.5%. Among our nearest neighbours in Asia, New Zealand’s inflation is one of the highest. And there’s one question top of mind when a worker asks for a big wage increase: Will inflation be with us for a long time? While that was great for homeowners and workers, it set the dominoes now tumbling in today’s inflation surge. Ukraine is one of the world’s largest producers of sunflower oil. As Renney says, the Beehive can help cut the country’s reliance on petrol and diesel; it can help upgrade one of the world’s least efficient car fleets. New Zealand’s inflation rate is now at a 30-year high of 6.9%, reflecting the soaring cost of everything from tomatoes to used cars. It’s the soaring cost of food, petrol prices, building materials and the increase in council rates. In the UK, inflation is at a nearly 30-year high. In the US, it’s a 40-year high. The reason for the blame game is obvious.

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Image courtesy of "Newstalk ZB"

Economics professor: It's unlikely that increasing wages will match ... (Newstalk ZB)

Despite inflation reaching the highest it's been in 30 years, one economist says it's unlikely wages will increase to match it. Businesses are just trying.

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