Inflation jumps to almost 6 %

[Wainuiguy]

http://www.stuff.co.nz/business/12760959...pp-android

Biggest annual jump in 30 years.  This is what happens when you print money.  But those who do shopping know that number is far higher than that.

[Oh_hunnihunni]

That's what happens with a runaway property market and a pandemic that requires huge unplanned expenditure. Along with supply chain breakdowns, production interruptions, and shipping pressures.

The massive price rises for N95 masks over the past week is a perfect example.

[Magoo]

i guess they dont include rent and petrol in the count.
and yes, we share the shopping and i reckon its more like 10 or 12%.

[Wainuiguy]

i guess they dont include rent and petrol in the count.
and yes, we share the shopping and i reckon its more like 10 or 12%.

Agree.   It is more likely into double digits.

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That's what happens with a runaway property market and a pandemic that requires huge unplanned expenditure. Along with supply chain breakdowns, production interruptions, and shipping pressures.

The massive price rises for N95 masks over the past week is a perfect example.

Who created this runaway property market?  And issue was that pandemic spend was untargeted.  From the billions spent almost no new infrastructure was created.

[harm_less]

i guess they dont include rent and petrol in the count.
and yes, we share the shopping and i reckon its more like 10 or 12%.

Seeing a few hefty rises on the supermarket shelves, among the gaps. Property owners sans mortgage and being largely self sufficient insulates us from the worst of inflation so can't comment on what is 'typical'.

[yousnoozeyoulose]

We're pretty much at the bottom rung when it comes to the international supply chain so it ain't surprising that we're adversely affected when the whole thing goes tits up. Punishment for living in paradise, I guess.

But thinking positively (because you have to in times of trouble), you have to go big picture. To quote the Washington Post - "Inflation is bad. But mass unemployment would have been worse"
https://www.washingtonpost.com/outlook/2...-stimulus/

There was no magical way we were going to avoid both high inflation and high unemployment. The people in charge had to choose one, Sophie's Choice style.

[Magoo]

i guess they dont include rent and petrol in the count.
and yes, we share the shopping and i reckon its more like 10 or 12%.

Seeing a few hefty rises on the supermarket shelves, among the gaps. Property owners sans mortgage and being largely self sufficient insulates us from the worst of inflation so can't comment on what is 'typical'.

also mortgage/debt free but not in any way self sufficient.

[Oh_hunnihunni]

Infrastructure? Oh rubbish. All around my suburb, new social housing units are going up. We still have shiploads of new vehicles arriving, even if cat food is short.

This is capitalism at work. The market responding to demand. Isn't that what you Nats want to happen? Or do you need a profit on saving lives as well?

[Magoo]

We're pretty much at the bottom rung when it comes to the international supply chain so it ain't surprising that we're adversely affected when the whole thing goes tits up. Punishment for living in paradise, I guess.

But thinking positively (because you have to in times of trouble), you have to go big picture. To quote the Washington Post - "Inflation is bad. But mass unemployment would have been worse"
https://www.washingtonpost.com/outlook/2...-stimulus/

There was no magical way we were going to avoid both high inflation and high unemployment. The people in charge had to choose one, Sophie's Choice style.

good positive post!
rubs a wee bit of ointment into the wound, but its not a 40 gallon drum full of newmans caesar vinaigrette.

[Wainuiguy]

Infrastructure? Oh rubbish. All around my suburb, new social housing units are going up. We still have shiploads of new vehicles arriving, even if cat food is short.

This is capitalism at work. The market responding to demand. Isn't that what you Nats want to happen? Or do you need a profit on saving lives as well?

But the government didn't pay for the new houses or new cars did they?  Sorry just saw it was social housing- but how much was planned by the prior government?  Of the 8500 houses added to HNZ stock under this govt approx 3500 are new of which 2500 were planned under the last government and a further 5000 bought on the open market in direct competition of first home buyers.

Approximately 7 billion was spent on wage and business subsidies yet overall debt spiraled by 100 billion.  No new roads, no new train tracks, no new hospitals, no extra ICU beds.  Just massive debt.

[king1]

Big infrastructure spend ups is what governments do when the economy collapses and there isn't global pandemic...

[Magoo]

our boat burns 25 litres of fuel an hour at speed.
its going to be a slow summer

[Oh_hunnihunni]

Infrastructure? Oh rubbish. All around my suburb, new social housing units are going up. We still have shiploads of new vehicles arriving, even if cat food is short.

This is capitalism at work. The market responding to demand. Isn't that what you Nats want to happen? Or do you need a profit on saving lives as well?

But the government didn't pay for the new houses or new cars did they?  Sorry just saw it was social housing- but how much was planned by the prior government?  Of the 8500 houses added to HNZ stock under this govt approx 3500 are new of which 2500 were planned under the last government and a further 5000 bought on the open market in direct competition of first home buyers.

Approximately 7 billion was spent on wage and business subsidies yet overall debt spiraled by 100 billion.  No new roads, no new train tracks, no new hospitals, no extra ICU beds.  Just massive debt.

The government does pay for social housing. Via taxation. Which comes from the high employment rate and our excellent overseas earnings.

As for spending, if you bother to look, plenty of that is going on. New trains are running on the tracks, new highways are underway, new spending is happening in our health system, including $644m on icu beds...

https://www.rnz.co.nz/news/national/4570...d-covid-19

[Oldfellah]

I wonder if they will print more money to top up my pension to match inflation? 

[Oh_hunnihunni]

I was wondering the same thing. Either way my corporate LL will immediately raise the rent by 30% of whatever the increase is...

[Magoo]

after inflation comes hyper inflation, trillion dollar kilo of sugar etc
when a wheelbarrow full of money is needed to buy a loaf of bread.
my advice, get plenty of wheelbarrows.

[Lilith7]

after inflation comes hyper inflation, trillion dollar kilo of sugar etc
when a wheelbarrow full of money is needed to buy a loaf of bread.
my advice, get plenty of wheelbarrows.

You could go into business in your backyard, knocking up wheelbarrows & flogging them off cheap outside the local supermarket...

[Magoo]

they'd be a bargain at 5 trillion dollars each.

[harm_less]

Reminds me of a guy who worked on the construction of the New Plymouth Power Station back in the 1960s. He regularly went out through security check with a wheelbarrow full of timber off-cuts (firewood) or other such worthless refuse. Seemingly it went on for quite some time before they realised he was actually flogging the wheelbarrows.

[Wainuiguy]

But the government didn't pay for the new houses or new cars did they?  Sorry just saw it was social housing- but how much was planned by the prior government?  Of the 8500 houses added to HNZ stock under this govt approx 3500 are new of which 2500 were planned under the last government and a further 5000 bought on the open market in direct competition of first home buyers.

Approximately 7 billion was spent on wage and business subsidies yet overall debt spiraled by 100 billion.  No new roads, no new train tracks, no new hospitals, no extra ICU beds.  Just massive debt.

The government does pay for social housing. Via taxation. Which comes from the high employment rate and our excellent overseas earnings.

As for spending, if you bother to look, plenty of that is going on. New trains are running on the tracks, new highways are underway, new spending is happening in our health system, including $644m on icu beds...

https://www.rnz.co.nz/news/national/4570...d-covid-19

So the new train - Te Huia?  The massive $100 mil white elephant?  Where is the fast train promised?  Where is the train from Tauranga to Auckland promised?

Where is Buller Hospital?

Where is the light rail promised?  

And note you didn't answer about the social housing and when it had been planned.  Or the fact the government has been in direct competition with the first home buyers it said it cared about.

What roads have been built?  What ones are underway?  This government shelved significant roads planned then restarted projects but as far as I can see hasn't started any of them.

How many ICU beds have been added?  Last time I looked the actual number had DECREASED.  Doctors publicly calling out Little about it.

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Big infrastructure spend ups is what governments do when the economy collapses and there isn't global pandemic...

OK gotcha - otherwise just throw printed money anywhere without getting any real return.  Sounds legit.