Inflation remains very high at 7.2%

Stats NZ has reported that annual inflation remains high at 7.2%. Components are:

• Non-tradeable 6.6%
• Tradeable 8.2%
• Home ownership 18%
• Food 11%
• Fruit and vegetables 20%
• Transport 8.4%

The cumulative effect of quarter after quarter of high inflation is significant. The cost of living is 14.1% higher than the last election and 19.8% higher than when Labour took office.

In most developed countries, inflation is now declining. It has dropped in France, Canada, Germany, EU, US, Ireland and UK.