Home > Dollars & Sense > An early Christmas prezzie from a “fiscally responsible” government…

An early Christmas prezzie from a “fiscally responsible” government…

“Shoppers, motorists and mortgage payers have known it for months, and now it’s been confirmed – prices are rising at their fastest rate for 21 years.

Petrol went up by 20 per cent, food by 7 per cent and electricity by 7.8 per cent as the consumer price index rose 5.3 per cent in the year to June 30, the biggest rise since 1990. 

The figure includes last year’s rise in GST but, even without it, inflation would still have been 3.3 per cent, above the Reserve Bank’s 1 per cent to 3 per cent target.

Now economists believe there is a 70 per cent chance of a rise in mortgage rates before December to try to curb inflation

Wages, meanwhile, are lagging behind and unions warn that workers will have no choice but to resort to industrial action simply to maintain their living standards.

Latest available figures from Statistics New Zealand show salary and wage rates rose only 1.9 per cent to the end of March…”

And readers seems to agree,

I wonder who the two folk were who voted for “Prices have dropped”? I’d like to shop where they shop.   (We probably all would.)

New Zealand voters are starting to work out that the tax shuffle last year simply delivered a big tax break to the wealthiest while the poor and middle classes are paying higher food and petrol costs, not to mention higher GST rates.” – Bernard Hickey, Interest.Co.Nz

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