Inflation at 15 year low

Stats NZ reports:

The consumers price index (CPI) increased 0.1 percent in the year to the December 2015 quarter, following a 0.4 percent increase in the year to the September 2015 quarter, Statistics New Zealand said today. The previous smallest annual movement was a 0.5 percent fall in the year to the September 1999 quarter. 

That’s great for families, especially those on fixed incomes.

Inflation in the last three years has totaled just 2.4% or 0.8% a year.

Inflation from 2005 to 2008 totaled 9.4% or 3.2% a year.

And if you recall Labour’s major policy at the last election was to destroy the generation market for NZ electricity because power prices were going up too much. Well electricity costs have increased just 0.4% in the last year.

Also Labour were campaigning recently on the price of milk. They seemed to think milk should cost less than coke, despite the fact one has to be farmed, milked and transported while the other is just a syrup you add to water.

Anyway what have milk prices done? Down 14.2% from a year ago! Labour really do pick them well. In fact milk is cheaper now than it was in 2008!

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