The cost of living for the average household increased by 7.7% in the 12 months to March, according to figures released by Stats NZ.
Each quarter, the household living-costs price indexes (HLPIs) measure how inflation affects 13 different household groups, plus an all-households group.
It is different to the consumers price index (CPI), which measures how inflation affects New Zealand as a whole.
Higher prices for interest payments, grocery food, rent, and fruit and vegetables were the main contributors to the HLPI increase for the quarter ending March.
Between March 2022 and March 2023 prices for interest payments increased 38%, rent increased 5.4%, grocery food increased 12% and fruit and vegetables increased 21%.
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Look at the interest costs – the result of the Reserve Bank, under instruction from the Minister of Finance, trying to hold down the rampant inflation caused by this Government’s profligate spending.
That is not the effect of the cyclone or the war in Ukraine. This is the direct effect of vast, poor quality government spending and consequent policy settings to control inflation.
“Food prices increased by 12% for the average household, which was the main contributor for most household groups,” consumer prices manager James Mitchell said.
The 7.7% yearly increase followed an 8.2% increase in the 12 months to December 2022.
The cost of living for beneficiary households increased 6.7% in the 12 months to March 2023.
“This was due to higher prices for rent, interest payments, grocery food, such as eggs and cheese, and fruit and vegetables,” Mitchell said.
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I don’t know why anyone is surprised by the huge increase in rents. This was foreshadowed by almost everyone including Blind Freddy as the likely result of the government’s continued war on landlords. They removed tax incentives, added huge capital costs in the form of the Healthy Homes policy settings, and told everyone that landlords would just suck it up. When you add in the increased interest it is no surprise that landlords are seeking to recover the increased costs in higher rents.
Add to that the abject failure of Kiwibuild, continuing the constrained supply of housing, then it was always going to happen.
The only surprise is that the dolts in charge couldn’t see it coming like everyone else.
Rent makes up about a third of beneficiary household expenditure. This compares with 13% for the average household, and 5% for highest-spending households.
The cost of living for Maori households increased 7.5% and superannuitant households 7.1%, while highest-spending households’ cost of living increased 8.7% and the lowest-spending households 6.9%.
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The very people this government proclaimed to be assisting with their policies are actually being hurt and that hurt is going to cost the government dearly come the election.
When you add in the pain of crime on top of the pain of the cost of living crisis then you should be staring at polls showing Labour sinking badly, but they aren’t. You might like to blame the media for that, but that would be silly. You might like to think that it just needs time for the opposition to fire, but again that would be silly.
The canary in the coal mine for National is long dead. With all this happening National should be at least five points ahead. The fact they are not should send shivers down the spine of every blinkered National supporter claiming Christopher Luxon is to be our saviour.
He isn’t, and he hasn’t mustered even a minor miracle in the process. Sadly I don’t think he will be walking on water, even at a dead flat low tide any time soon.
No matter, Chris Hipkins and Christopher Luxon will be able to plan their grand coalition on their cozy trip to the King’s coronation.
Cam Slater is a New Zealand-based blogger, best known for his role in Dirty Politics and publishing the Whale Oil Beef Hooked blog, which operated from 2005 until it closed in 2019. This article was first published HERE.
5 comments:
While out-of-control economic issues are vital, both Labour and National are relieved to use them to avoid the longer term debate on co-governance and He Puapua plans.
Voters are deeply concerned about both areas and do not understand why the latter is not debated at length - given its ramifications for NZ's future.
National has been a very feeble Opposition but a change of government will see Labour as a robust and high-profile attack machine on all matters. Its re-focus on the Maori agenda will be swift with lethal consequences.
Countdown homebrand baked beans. 3 weeks ago, 80c. Yesterday, $1.40 per tin same label and contents.
I did question the amount, got a price check done and yep, that's the price.
Hipkins will be too busy locked in intellectual debate with the maori King (a colonist concept?) to devote time to Luxon. I wonder of the "interpreter", u.p. Morgan, will be present.
Remaining an Apartheid state or not, is in fact the biggest challenge New Zealand has ever faced.
Without a true democracy all other issues can never be solved.
According to the latest polls there's an outside chance enough disgruntled national supporters might move to NZF to push them the extra 0.5 percent they need to reach the threshold, this will cancel out the maori party's 4.5%. BUT it's a hail Mary, if NZF fail, they will have destoyed enough votes out of the right to guarantee the left get in. The only other option is Luxon pulls a rabbit out of a hat and either steals back the NZF votes or steals enough from the left, both very unlikely. So voting NZF looks to be a good strategic move at the moment, well actually our only hope, for those on the right who can truly see what's happening, hopefully that amounts to the 0.5% required.
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