New Zealand inflation rate at highest in over 30 years

Annual inflation is the highest since June 1990, with housing and transport being the main contributors.

According to Stats NZ, new build home prices are up 16% from 2020, rents are also up 3.8% overall and fuel is up 30%.

Kiwis said they are noticing the price hike.

“My weekly salary isn’t even enough to fill my car or my closets,” one person said.

“Sometimes you can’t afford a bottle of milk, it’s all over the place to be honest,” another said.

“Gasoline prices are the biggest I notice,” one man said.

“We really hear a lot about three main areas, with petrol being the most important, followed closely by food, then rent is a huge issue for a lot of people,” said Consumer NZ chief executive Jon Duffy. .

While prices are skyrocketing, wages are not. The latest data from Stats NZ shows that 42% of Kiwis did not get a pay rise last year and if they did it was below inflation.

“Inflation has a disproportionate impact on low-income New Zealanders and it’s a real problem for us as a society,” Duffy said.

To bring prices down, interest rates would have to rise steadily, hitting homeowners.

“You’re looking at a mortgage rate now in the middle of 3s, it’ll be in the middle of 4s, in the middle of 5s [percent]“says Kiwibank Chief Economist Jarrod Kerr.

But for those who are building a house, there is good news. Construction costs are expected to decline later this year.

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