Inflation increases are largely driven by rising rents and construction costs. Video / NZ Herald ...
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Inflation increases are largely driven by rising rents and construction costs. Video / NZ Herald
NOW PLAYING • Focus: Inflation hits 7.3%
Inflation increases are largely driven by rising rents and construction costs. Video / NZ Herald ...
With inflation at an all-time high and the cost of living continuing to skyrocket it is no surprise more and more Kiwis are finding it harder financially. New data shows what areas of the economy and consumer products are being hit hardest by inflation.
Inflation hit 7.3 per cent inthe June quarter - the highest increase in 32 years. That figure was higher than most economists anticipated, expectations were for 7.1 per cent.
Stats NZ data released in its quarterly Consumer Price Index show inflation in the June quarter was largely driven by rising rents and construction costs, and higher prices for fuel.
Petrol prices increased 32 per cent in the year to June, while diesel prices increased 74 per cent over the same period.
The tradeable inflation rate, which measures goods and services that are influenced by foreign markets, was 8.7 per cent in the year to the June quarter – the largest annual movement, either up or down, since the series began in June 2000.
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Domestic, or non-tradeable inflation, was 6.3 per cent in the year to June, the highest since the series began in June 2000.
Price comparison website PriceSpy has found Kiwis are now paying more than 15 per cent more on consumer goods and appliances - compared to prices in early 2020 before the onset of the global Covid-19 pandemic.
According to the latest PriceSpy Price Index data, the cost of whiteware goods are up 16 per cent compared to early 2020 prices, with fridges and freezer prices up 20 per cent, dishwashers up 18 per cent, laundry care up almost 16 per cent and washing machines up 15 per cent.
In the year to April, Kiwis spent 5.8 per cent more on washing machines, 5.3 per cent more on dishwashers and 6.3 per cent more on fridge freezers.
PriceSpy New Zealand country manager Liisa Matinvesi-Bassett said the continued impact of Covid-19 was still having a knock-on effect on production and manufacturing, influencing supply and therefore bumping up prices at the checkout.
That coupled with inflation, meant that prices were not likely to subside or decrease anytime soon, Matinvesi-Bassett said.
"Unfortunately, the price increases we are seeing are neither stand alone, nor unexpected. Whether it's across consumer goods, food or fuel prices – increases are happening across the board for a multitude of reasons, making it difficult for consumers all round," Matinvesi-Bassett told the Herald.
"First and foremost, inflation rates are sitting at a 30-year high. When inflation rates rise, the operational cost to run a business is also, most certainly, set to rise, also.
"When this happens, in many cases, the costs unfortunately get passed back on to consumers - through the prices they pay for goods and services alike."
A look at what products are facing the highest price hikes as inflation hits new highs. Photo / Sylvie Whinray
With overseas factories closing and reopening due to ongoing changes in Covid-19 restriction levels, further impacts are caused to supply and demand, and price points are ultimately affected, said Matinvesi-Bassett.
"The cost of freight and shipping is also sky high at the moment as a result of rising fuel prices and reduced distribution channels. On top of this, troubled times in Europe add even more disruptions to supply chains, once again, impacting prices.
"With consumers continuing to feel the pinch, our insights suggest shoppers are fighting back and changing their purchase behaviours."
Stats NZ's latest retail spending data for the June quarter is due out on August 25.
Retail spending in the March quarter rose by 2.7 per cent, driven by increased spending on household durables, such as recreational equipment and consumer electronics.
