Stats NZ reports:
In the March 2014 quarter, the merchandise terms of trade rose 1.8 percent, Statistics New Zealand said today. The latest increase was due to export prices rising and import prices falling.
“Five consecutive quarterly rises have lifted the terms of trade to its highest level since the September 1973 quarter,” prices manager Chris Pike said. The terms of trade is now 1.7 percent below its all-time high in the June 1973 quarter.
How can this be? The opposition claim we must undermine the independence of the Reserve Bank and get them to bring the exchange rate down.
Obviously the country is in crisis, and needs a Labour/Green/Winston/Hone/Laila/Dotcom Government!