According to Steven Toplis, head of research of the Bank New Zealand research department inflation has gone up and is expected to go up to a staggering 5.5 %. The bank states that this is the result of rising prices of fuel and food.
This is a bizarre and untrue statement. Uncontrollable higher prices not connected to higher demand are the result of inflation not the cause. Inflation in fact is the result of adding more money to an already diluted amount available.
The only government which has allowed that to happen is the US government. The Federal Reserve of New York by means of the QE 1 and 2 measures has added billions of money (the fiat paper currency called the dollar) to an already much inflated money supply in order to restart the ailing economy. Our price rises are the result of these measures and not the price rises themselves.
Soaring fuel prices and the lingering impact of the GST hike are likely to send inflation to the highest level in more than two decades this year, hitting households hard.
Rises in the cost of food and school and university fees have also been identified as contributing to pushing up the cost of living and inflation rates.
This morning, Statistics New Zealand will publish the consumer price index for the first three months of the year, which is expected to show that prices rose on average 4.6 per cent in the year to March 30.
The movement in prices was having a substantial impact on consumers, with rises “heavily weighted towards the goods and services that we can’t really avoid” such as fuel and food, said Steven Toplis, head of research at Bank of New Zealand.
Source: Aotearoa a wider perspective