Nurses and teachers are pushing the Labour Government for massive pay increases, but the Government is rejecting their claims on the grounds of being fiscally responsible -- for now. Thomas Coughlan reports.
The effects of inflation have been much heavier in the last decade for poorer consumers than rich ones. That's because tax and policy moves have effectively been regressive, including increases in GST, fuel and cigarette taxes, along with falling prices for goods and services used more by richer consumers.
Māori households saw the highest inflation in the March quarter and price rises for cigarettes and tobacco had the largest impact on inflation for most household groups, Statistics New Zealand said.
The Reserve Bank has left the official cash rate or OCR at 1.75 percent for the tenth consecutive decision. In a statement this morning the RBNZ said it expected the rate to stay at 1.75 percent for “some time to come”, with the risks of either cuts or increases evenly balanced.
New Zealand businesses see a slower pace of inflation in the coming year, although firms anticipate wages will rise at their fastest pace in four years as economic growth remains robust.
The consumers price index (CPI) rose 0.5 percent in the March 2018 quarter, Stats NZ announced today. This is in line with the market expectations, but slightly above those of most bank economists here.
In today's email we asked whether the economy is getting closer to its increasingly hard to define "speed limit".
Unemployment's fall to a nine-year low of 4.5 percent begs the question for interest rate setters: has the economy revved so hard that it is about to generate inflation? Bernard Hickey looks under the hood and finds a higher performance engine.
In today's email we looked in detail at a landmark speech by acting Reserve Bank Governor Grant Spencer.
In today's email we have the latest on the coalition negotiations, look at the inflation figures, and review the SSC v Guardians of NZ Super Fund drama.