Thursday, April 18, 2024

David Farrar: We still have an inflation problem

The drop in overall inflation to 4% is welcome, but it masks we still have a real problem.

The graph below shows the annual inflation rate for both tradable and non-tradable inflation. Most of the tradable sector is international, so we have benefited from the trend there. But non-tradable (generally domestic) inflation remains very high at 5.8% and has barely come down from its peak.

Click to view

I would not be counting on interest rate reductions too soon.

David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders.


Anonymous said...

"Trust us we are the media".....4% is not 5.8% is it.

Anonymous said...

You don't believe the governments CP Lie numbers do you.

Double what they say and you are closer to the true inflation number.