Inflation hits 18 year high

October 21st, 2008 at 12:26 pm by David Farrar

Labour is making a habit of leaving office with economic problems for the new Government.

Stats NZ reveals that for the year to September 2008 was 5.1% – its highest level since June 1990. Major contributors:

  • Household Energy 7.5%
  • Hospital Services 7.1%
  • Private Transport 21.5%
  • primary and secondary eduction 5.7%

The monthly food price index also came out today – and it is also at an 18 year high of 10.8%. Major contributors:

  • Vegetables 22.3%
  • Mutton/Lamb 17.3%
  • Bread 16.5%
  • Pasta 18.2%
  • Cheese 42.3%

All fairly common items, to say the least.

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25 Responses to “Inflation hits 18 year high”

  1. getstaffed (9,186 comments) says:

    “It’s all about CRUST”

    i.e. There’s not much bread left. Thanks Labour.

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  2. gd (2,286 comments) says:

    “its not our fault Dolly did it”

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  3. dad4justice (8,238 comments) says:

    No doubt the thieving politicians and judges topped up their salaries!!

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  4. Sam (502 comments) says:

    Let’s see – blame apportioned as follows:

    >the energy prices on National party’s 1990s energy policy
    >hospital prices on – oh what the heck, the National Party again…
    >private transport – easy, world petrol prices (out of our control… what taxes…shh…)
    >education costs on hmmm, we’ve been govt. for a while now… oh what the heck, the National Party again…

    Now food is easy: bad weather adversely affecting local crops and meat production (plus rising international demand for our dairy products), falling kiwi dollar for imports…

    We must also consider the affects of the full moon…

    That is to say, none of this is Labour’s fault – and it would have been much worse under National!

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  5. Glutaemus Maximus (2,207 comments) says:

    John Key can’t be trusted because he has never drowned kittens.

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  6. Murray (8,847 comments) says:

    Quick comrades, blame the last National government!

    Because that NEVER gets old.

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  7. siobhan (278 comments) says:

    “Labour is making a habit of leaving office with economic problems for the new Government.”

    Tempting to leave them in there to sink once and for all.

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  8. Chaucey (43 comments) says:

    Funny how Hospital Services and Primary/Secondary Education are big contributers to rising inflation rates.
    These were things traditionally paid for from the tax take.
    Can’t hardly say they are “free”, if the costs to individuals are rising like that!

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  9. Brian Smaller (4,023 comments) says:

    Thanks Cullen. Another stellar performance. Inflation eating away at my salary so fast that pay rises in the last five or six years have not even kept up with inflation. And I still get taxed at top rate of 39% so that people earning half my salary but with two more kids can take home about the same amount I do. Fucking Brilliant.

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  10. PhilBest (5,125 comments) says:

    siobhan (160) Vote: 1 0 Says:

    October 21st, 2008 at 1:03 pm
    “Labour is making a habit of leaving office with economic problems for the new Government.”

    “Tempting to leave them in there to sink once and for all.”

    The more we learn, the more I dislike the possibility that the Nats will get into government only to face an impossible task, with the Media and the Heleban in the role of “HM loyal opposition” giving them hell whatever they do, and succeeding in shifting all the blame from Labour 1999-2008 onto National 1990-1999 and National 2008-2011. It is a saying that the victors write the history. The Left all over the world have won the battle for “the institutions” so that they get to write the histories whatever happens, heck, they get to write it AS IT HAPPENS. The “Right” barely even fired a shot in THAT war.

    Even so, I am inclined to agree with you, Siobhan, that Labour might actually sink for a long time if THEY cling to power now, especially if the nutty Greens dictate economic policy as their price for coalition support.

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  11. gd (2,286 comments) says:

    And you know the really amusing thing The RBNZ Governor is going to lower interest rates 100 basis points.

    Now could this be the same RBNZ Governor who told us for the past 5 years that we needed high interest rates to choke of high inflation

    And we have………………………………….wait for it HIGH INFLATION.

    Do these turkeys know what the hell they are up to or do they make it up on the hoof.

    One finds it very very difficult to have confidence in people who say one thing one minute and then the opposite the next minute

    And then they wonder why they have no credibility

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  12. siobhan (278 comments) says:

    PhilBest – “especially if the nutty Greens dictate economic policy as their price for coalition support”

    Exactly, there are a large number of people who will vote for the greens based on their environmental policy and have given no thought to the social implications (ie anti smacking, food police etc). What’s more, there has been absolutely no economic fall-out from the emissions trading scheme. Give this policy another 3 years to sink in and start having an effect on everyones net income we may well see the green party absent themselves from our political landscape.

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  13. dime (9,980 comments) says:

    brian – why should you have more money than someone that has 2 kids? that doesnt seem fair.

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  14. Dyan22 (6 comments) says:

    “brian – why should you have more money than someone that has 2 kids? that doesnt seem fair.”

    I hope that was a tongue-in-cheek question, Dime.

    Just in case it wasn’t; give me one good reason, dime, why anyone without children should be required to support those who do by paying greater taxes. That doesn’t seem fair.

    Everyone should be able to use their own money for whatever cause they choose, over and above the necessary taxes for the core business of government. If he had more money, Brian may want to contribute to all sorts of ‘good causes’. Who are we to direct where his potential charity might go.

    Dyann
    Mother of 4 people

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  15. Robert Black (423 comments) says:

    Too much reliance on the US economy.

    If anyone had had any insight, our cars would all be run on LPG until electric ones and solar power windmills would have backed up the dams.

    Instead a farming country has ridiculously high prices for the things it produces and exports, cheese, vegetables.

    And instead of using tourism wisely, it quickly sold the country to others.

    China: people cannot own land, only lease it.

    Most of the vegetables are sold on the street.

    No foreigner can truly be a Chinese citizen, so all can be removed if need be.

    China will always remain Chinese.

    Chinese will always remain Chinese.

    The economy is large enough to survive the current economic crisis.

    I got a good salary here and plenty of cash left over at the end of the month.

    New Zealand never had anything to save it.

    The leaders should have had enough forsight to look far into the future, instead of just thinking about the next term.

    MMP sucks.

    China is considered an evil dictatorship, but their leaders think long-term. At least they get things done and the country is not ravaged with stupid taxing laws and laws that tax like a rat with fleas.

    Hang on to your democracy until the ship sinks.

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  16. dime (9,980 comments) says:

    dyan – yea i was taking the piss :P

    heres another point.. why should those that choose to underwhelm in life, have kids young without giving any thought to how they will pay for them, be rewarded?

    as opposed to the couple that work hard and try to get a start in life, so they will be able to provide for kids in the future.. no help for them! infact, penalise them!

    rich pricks

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  17. stephen (4,063 comments) says:

    Without attacking me – “why should those that choose to underwhelm in life, have kids young without giving any thought to how they will pay for them, be rewarded?” – the point, i think, is that the government wants people to have enough money to take care of the kids – if the parents are struggling to provide for the kids, why should the kids suffer? Yes, vouchers etc might be better.

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  18. NeillR (351 comments) says:

    Hmm, 17.6% increase in vehicle licensing fees. Yup, inflation’s up because of the ‘international crisis’.

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  19. NeillR (351 comments) says:

    Tempting to leave them in there to sink once and for all.
    Yes, but the only problem is there won’t be anyone left to vote them out in 2011. The only thing about it is that Labour is doing their utmost to relinquish sovereignty – another 3 years of them and we won’t have any choice but to become a state of Australia. Then watch the leftie shit hit the fan.

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  20. baxter (893 comments) says:

    Last month Cullen re-assured the nation that we would come out of our recession in the fourth quarter. Everything will start to look up then and inflation would start coming down….We are in the fourth quarter is it happening?

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  21. OECD rank 22 kiwi (2,752 comments) says:

    Thanks Michael Cullen you silly, old, incompetent fool.

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  22. Brian Smaller (4,023 comments) says:

    Dime – I have two kids, someone with 4 kids and earning half my salary takes home not much less than I do. I worked with a guy who dropped his work days from 5 to 3 and got a pro-rata decrease in his salary. With his new hours, which count as full time employment, and his three kids, he is earning only a few grand less in the hand per year than when he worked 5 days – all thanks to Welfare For Families. The four-day weekends more than compensate for it according to him.

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  23. Brian Smaller (4,023 comments) says:

    Another good example. Boy in my son’s rugby team last year has Dad who works in a warehouse. They have eight children. He earned about $35K per year, but took home more than I did on my salary. So I work and get taxed at highest rate on a portion of my salary so he can have a higher income than me? All welfare for working families should stop.

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  24. Dyan22 (6 comments) says:

    dyan – yea i was taking the piss :P

    Glad about that Dime. LOL

    “the point, i think, is that the government wants people to have enough money to take care of the kids”

    Stephen – working hard seems to be a good option; and spending wisely.
    I am flabbergasted when so much is made of not having enough money to feed the kids when I see what people put into their shopping trolleys.
    Unfortunately we have had a decade of ‘borrow-to-live’ mentality. Have-everything-now or I’ll feel deprived attitude.
    Until we individually can look ourselves in the mirror and say “I have managed my own life well” can we legitimately look elsewhere for other events to blame.
    (Well, that’s my personal take on the situation.)

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