Food prices just keep heading for the moon. The National Party says it's a "crisis at the checkout".
According to the latest Stats NZ Food Price Index release for November, our annual rate of food price inflation hit 10.7% last month.
That's up from 10.1% as of October and is the highest level in this country since September 2008, when annual food price inflation hit 10.8%.
National Party Finance Spokesperson Nicola Willis says all the Government has offered are excuses. "They have blamed the supermarkets, the war in Ukraine, and the banks." More comments from Willis further down.
But back on the latest 10.7% annual food price inflation - while Stats NZ's media release last month for the October figures had explicitly referenced a 14-year high, oddly this month's release made no direct reference in the text at all to the November figure being a new 14-year high water mark - although it is displayed in a graph.
It is noteworthy to mention that beyond that 10.8% figure in September 2008 you have to go back to 1990 to find a time when food price inflation was running at these kinds of levels.
Stats NZ said the 10.7% annual increase in food prices for the year to November 2022 "was due to rises across all the broad food categories we measure".
Compared with November 2021:
- grocery food prices increased by 10%
- fruit and vegetable prices increased by 20%
- restaurant meals and ready-to-eat food prices increased by 8.0%
- meat, poultry, and fish prices increased by 12%
- non-alcoholic beverage prices increased by 7.8%.
Grocery food was the largest contributor to this movement.
Stats NZ's consumer prices manager James Mitchell said increasing prices for cheddar cheese, yoghurt, and standard two-litre milk were the largest drivers within the grocery food sector.
The second-largest contributor to the annual movement was fruit and vegetables. The items within this group that influenced this movement the most were potatoes, onions, and bananas.
In terms of monthly figures, the November month prices were "flat" compared with October.
However - after adjustment for seasonal patterns, prices actually showed a 1.0% increase.
“It’s typical to see food prices fall in November due to falling fruit and vegetable prices. However, fruit and vegetable prices did not fall as much as in a typical November,” Mitchell said.
Fruit and vegetable prices fell 4.7%. But after adjusting for seasonal effects, these same prices actually rose 0.9%.
All other broad food groups rose in price. A 1.1% rise in grocery food was the biggest upwards contributor, led by yoghurt, potato chips, and cheddar cheese.
Some notable fruit and vegetable price falls during the month were:
- tomatoes (down 42%)
- broccoli (down 44%)
- strawberries (down 35%).
However, against this, there were these notable increases:
- onions (up 28%)
- potatoes (up 10%)
- kiwifruit (up 26%).
ASB senior economist Mark Smith noted the fact that food prices were flat in November, but said "this was about where the good news ended as this month typically sees lower food prices".
"The 1.0% seasonally adjusted climb in November continued the strong monthly run of late, with 0.9% being the lowest seasonally adjusted monthly climb over the past 6 months."
In terms of the annual picture, Smith said price rises "remain entrenched" with more increases (73% of all food items) than falls (27%).
"Plus-10% annual inflation for fruit & vegetables, grocery foods, and meat provides little cover for consumers, who will likely be relooking to trim any fat from the food bill this Christmas," he said.
"By all accounts and purposes, food price rises (and those wider tradable goods) should be cooling: Global food commodity prices have cooled of late and in time this should translate into cooling food price inflation at the retail level.
"Global oil prices are sharply lower, and this should provide motorists with some shelter from pronounced price increases elsewhere. Shipping costs have continued to go off the boil and this should act to cool broader tradable consumer prices. The higher NZD should support this, with the kiwi gaining 8 US cents (0.638 USD) since mid-October.
"It is our expectation that annual NZ food price inflation could nudge higher (11%+ is possible for calendar 2022), but then cool over 2023. However, the risk is that the current upward momentum in food prices takes longer to slow," Smith said.
“Today’s data reveals just how tough it is for many Kiwi families. Everywhere they turn, they are facing rising costs – whether it be with their mortgages, or at the supermarket checkout.
National's Willis said the cost-of-living crisis is hurting a lot of New Zealand families "and Labour‘s wasteful spending has made inflation worse".
She said the Government was blaming others, but "Labour fails to mention how their own economic mismanagement, failed immigration settings and added costs have contributed to rising costs".
"Christmas is already a stressful time for many families and my heart goes out to those who are wondering just how they are going to pay the bills. They deserve a real economic plan from Labour.
"National has a plan to fight inflation. We will address worker shortages, reduce costs on businesses, bring discipline to government spending, give Kiwis more money in their back pockets through prudent tax reductions, and focus the Reserve Bank solely on managing inflation."
163 Comments
Apart from a few outliers ie HW2 and TTP… I think there is a general acceptance that house prices are going to continue to slide and that ultimately it’s a good thing for the majority. Hopefully the government (which ever), learns from this and puts in a sensible DTI and builds more houses whilst the construction industry lightens up. Simple stuff really, should have been a politician, but too left leaning for that.
You are missing the point TJ which isn't surprising. Altruistic arguments about housing costs are well and good. But the cost of second hand housing does not affect inflation. Yvil also made the point concerning deep recession which in fact is another mandate of the Rbnz
The Labour announcement of more labour being imported will have an effect on inflation when more immigrants arrive on our shores. Are you in a union, what are they saying
HW2.. I have no idea what the unions are saying, I’m not in one. Didn’t you accuse me of trolling the other day.. pot kettle black? Or butt out was said too wasn’t it in an emotional outburst?? I just walked past a furniture shop and I’m sure the knobs are getting bigger on the chest of drawers. Biggest knob I’ve ever seen!
Just a correction on what is being taught at WEGC at least. They did a full-on flatting project based on a fictitious situation with 4 working friends. They selected a house and drew up a budget including post tax income, health insurance, the usual power/food/netflix and had to justify their decisions, spending, saving and giving. While teacher only days do my head in this project was pretty good and detailed for a 4th form assignment.
Food comes from fertiliser, diesel, land and labor. RBNZ interest rates make land 'costs' go up and possibly/maybe labor go down, have no effect on fertiliser or diesel. On balance the RBNZ is pushing food prices up but if fertiliser and diesel prices drop the rate price rises will decrease.
Is diesel very strongly correlated to the oil price which is quoted in USD.
A higher OCR would have a positive affect on the NZD/USD and therefor reduce the NZD cost of Diesel?
isn’t fertilizer also sold in USD and the freight associated with international supply chain paid in USD?
This is the exact reason we need a fundamental shift from high fertiliser use. Granted it will take time as fert is the easy option and clearly works, nobody is debating that, but eventually the phosphate will be hard to come by for it and we'll have to be prepared to transition to a longer term model when this happens to avoid a huge shock.
Which means that whichever way ya look at it, the economic system, profit model, debt and wealth model is structurally flawed.
Yeah inflation, input costs, supply constraints ya de da blame the govt, blame the RBNZ but still expect them to 'fix' it too. But let's look at the other input costs that nobody wants to discuss - land prices, asset prices, all funded by debt - who drove up those prices, who borrowed like drug addicts, who expects the next buyer to load up on debt to realise their 'wealth'?
Humans, most intelligent species still lost in their magic numbers, believing in higher authority and false prophets.
Yes, you are right IT guy. The simple fact is that interest rates are going to need to go a lot higher to tame the inflation beast, as has always been the case during these inflationary episodes. Somehow people have been kiidded into thinking disinflation is a painless process requiring only modest interest rate adjustments. Think 7, 8, 9, or 10% OCR.
The previous figures that were published then fed into an inflation figure that was unexpectedly high. That was at least to the experts, rather than actual consumers. That transaction will recur and consequently the OCR is setting up for another 0.75% hike at least with more of the same to follow. Whether they care to admit it or not the government will have to accept the emergence of rampant inflation happened on their watch and by their design and the ensuing recession is now unavoidable, and it will hardly be a little one.
Thanks Labour.
You couldnt find a better government to increase the cost of living by increasing compliance and regulatory cost on business, as well as restricting supply of labour so that costs go up in tandem with actual supply levels.
They have managed to push cost plus inflation, as well as reduce supply side by restricting firms ability to produce goods at the level they wish to operate.
Pretty impressive.
What more evidence do we now need to show that the more costs you heap on business, the more prices have to rise.
Its pretty basic 101 Economics this govt doesnt understand.
I had a family member who used to sell investment property, his favourite saying about this issue was
The average bloke is not that smart, and by definition 50% of them are even thicker.....
I tried to explain the difference between average and median to him, anyways he was an RE agent.
What a bunch of drivel.
Governments world wide are facing the exact same issues. Are you crediting Jacinda with the ability to drive inflation in the US & elsewhere?
Lolly scrambles are seen on both sides - for the Nats and ACT it’s the same old bollocks about tax cuts and culling public servants - and then we wonder why the hospitals are stuffed and the roads are falling apart. Mindless knee jerk politics.
Nothing to see here, we’re all rockstar.
The government's decision not to step in and prevent Marsden Point from closing resulted in a 20% increase in the cost of diesel approx a week after it closed as 67% of the nation's diesel came from Marsden Point.
The price of Diesel has a large effect of the price of our food through the food chain system in this nation.
So yes there are decision which this government have made which are directly causing increased inflation in this country.
Just wait till the taxes on Nitrous oxide (nitrogen fertiliser) start biting into what growers can economically produce from each hectare of land (and yes hydroponics use N as well) - we are already apparently on the cusp of losing a swag of domestic growers because the cost to produce doesn’t leave any margin to live off - so food security/availability could legitimately become an NZ issue for the first time since WW2. Unless you are keto of course - then you’ve got a few more years up your sleeve chewing on what remains of our meat and dairy sectors …..
What to do? The fuel tax was suspended to provide some breathing room while inflation was high. Assumedly the government was still resting easy in a fool’s paradise of inflation only being transitory. Problem though is inflation is now even higher and if that tax is reimposed, it will make it higher again. This government not only talk in circles they act the same.
If we are going to have a change of government,then we should spend more time worrying about who gets the reins next...I am a bit concerned about Nicola Willis's credentials...if she was a Labour politician,lots would be made of her cv...English Lit & journalism:
Willis was born and raised in Port Howard, Wellington. She is the eldest of three children.[4] Willis's mother was a journalist in the Parliamentary Press Gallery,[4] her father a partner in corporate law firm Bell Gully.[5] After a "privileged childhood", she first attended Samuel Marsden Collegiate, a private school for girls, before asking to spend her last two years of high school boarding at King's College in Auckland – a decision she regretted.[5]
She graduated with a first-class honours degree in English literature from Victoria University of Wellington in 2003,[6] and earned a post-graduate diploma in journalism from the University of Canterbury in 2017.[7] She was a member of the Victoria University Debating Society, and competed in international tournaments.
After graduation, she took up a position as a research and policy advisor for Bill English and went on to serve as a senior advisor to John Key in 2008[8] In 2012, Willis joined dairy co-operative Fonterra, taking on senior management roles, as well as serving on the board of Export NZ, a division of lobbyist group Business New Zealand.[9][10]
Her later career
Nicola left the Prime Minister’s office in 2012 to pursue her career at dairy co-operative Fonterra.
She was motivated to improve her understanding of New Zealand agribusiness and
what it takes for Kiwi exporters to succeed on the world stage.
Nicola was promoted through a number of roles at Fonterra, including a
stint as Director of Global Stakeholder Affairs, with responsibility for
Fonterra’s trade strategy. In her final role as GM Nutrient Management,
Nicola led a large operational team working to improve the environmental
performance of Fonterra-owned farms throughout New Zealand.
I also made a mental note that she arrived at Fonterra after Todd Muller. I'm convinced he employed her.
Being mentored for future political role no doubt.
Agreed, this doesn't specifically indicate competency, however is a well dusted cover letter exerpt that shows she knows how to play the game. Good for promoting ones self in politics, sure, but good for hard rational decision making for the benefit of the masses vs the minority is the real question. I'd like to see more specifics to judge that
The lack of foresight is astonishing…
Labour: "We'll gain popularity by temporarily lowering the price of petrol at the pump" "Yeah awesome idea!!!,hail our leader" 6 months later: "What happens when we have to put the price of petrol back up, to its normal price?" " Uhhh… ohhh... bummer, we didn't think about that one… hmmm, who can we blame???"
I think they'd have trouble pinning the blame on the opposition. 15 March 2022:
Opposition parties give government 'fail' grade over temporary fuel tax cuts | RNZ News
Marsden Point used to produce most of the bitumen for NZ roads. When it closed NZ became 100% dependent on imported bitumen. Nobody talks about this and makes the connection between all the potholes and the Marsden Pt closure. Just another example of extremely poor planning from the Labour Govt.
Don't have to wait...the mercury dancing over 20oC in welly today and the seatoun end of Broadway was liquid tar, ripped up in places by buses and this was only laid 2 years ago, of course using cheap chip s#it.
Imagine if that happened in Oz, you wouldn't be able to drive out of Sydney in winter without driving through a tar quagmire.
Perhaps they will shift tact and do the necessay thing: tell NZ it was a temporary reprieve, we are all going to hurt 2023 and this is something we have to accept as there are forces at play bigger than our government. But we are talking Labour here, so I'm expecting an extension come Marchto kick off the lolly scramble while housing continues to plummet. Pass the popcorn please
They blame inflation as a global thing every country is going through, oil and diesel and farm supplies, so inflation is imported, and thats fair to a limited degree.
They then forget that all their policies increasing the cost of doing business and restricting supply levels, so cost increase, supply reduction.
Put up the price of goods = "Inflation". - maybe they just realised this now ????
Governments have done that to Electricity for example, through the RMA, stopping the creation of new hydro electric supply.
Our power should be half the cost it is.
They also wont grant resource consent to use high quality Huntly coal within 1km of the coal fired generators, and instead import lower grade higher emmissions Indonesion coal to operate them.
Just another example of the general stupididy of todays economic masters, finding another way to successfully shoot ourselves in foot on a daily basis.
Are you sure it's blocked by resource consent? I flatted with one of Huntly coal mine's electrical engineers back when it was shut down, and asked him why it wasn't used for the power station (I had previously assumed it was).
According to him: a, the coal was too expensive for the power station - it was cheaper to ship from Indonesian slaver's coal without OSH restrictions, and b) it would be an absolute waste to use it for power as it's high quality coal suitable for steel smelting. In his opinion, if we wanted to use NZ coal for power, it should be the low-quality lignite from the SI. Which the greens would be very unhappy about.
Willie's pet project gone?
National’s deputy leader Nicola Willis says comments by the Prime Minister on cutting expenditure have sounded the “death knell” for a merger of state media outlets RNZ and TVNZ.
Willis told First Up the $370m initiative to strengthen public media had been an “ideological project” that should never have been put in the table.
They have realised the emporer has no clothes, and finally, in the public eye, showing some gumption in getting off the train wreck that has been the last 3 years in government. Oh how happy they'll be once they exit the circus and realise they have actual freedom outside those walls. They can let their hair down, shake off the mental cobwebs after following along like lemmings for th current term, and perhaps let it out, pack a couple kilos on over 2023 with all the popcorn they'll enjoy. Extra butter of course
2nd Scroll.
The plan is for a New World Order ( NWO ).
The Goal is for Complete Control over your Freedoms, Finances and Ultimately who you will Worship and give your Allegiance to.
Interest Rates must go Very High for a Very Long Time to wipe out the Middle Class to make this happen.
The Pandemic was a well Orchestrated Scamdemic. Those that Conformed to the Scam Stole the Freedoms of Others. It was NEVER about your Health. It was ALWAYS about CONTROL !
Unvaccinated Blood will become Valuable.
The Climate Cult is the new Covid Cult. This is a Hoax designed to Fund the NWO to Control You.
Watch how Inflation will NOT be Tamed by the Dates given from the RBNZ, Government, MSM, but pushed out further and further. High Inflation is Needed for High Interest Rates.
High Inflation is all by Design. Watch how other Countries will be in Lockstep. It's All Planned !
Do NOT allow the Government and MSM Gaslight you into a False Reality, eg, Ukraine and Russia's Fault for High Inflation, Pandemics Fault for High Interest Rates, that's the Excuse, that's the Cover.
Property Prices will Crash for ALL of 2023 and 2024.
Voting for Labour or National is Voting for the NWO. Search for a New Party that is not a Pawn for the NWO.
WW3 is Coming - ( It Does NOT start between Russia and Ukraine in that region) Those details will be released when Interest Rates go to 10% Next Year. ( 2023 )
Avoid MSM like the Plague. It is the Paid to Say Mouthpiece of a Corrupt Government designed to Manipulate and Control. MSM = Mainstream Misinformation.
The Prophet.
The plans of a NWO have been in motion for a very long time. Look closely at the American Dollar Bill. The Bible is very clear there is going to be a One World Government, and One Man Who Rules The World for 3 and a Half Years. We are Rapidly moving in that Direction.
The Covid 19 virus was real, but it was used as a front to scam Billions . This has greatly empowered the NWO. Unvaccinated Blood will be very sought after soon, and those that stood firm will be rewarded, and so they should be, ( The Pure Bloods ). Those that conformed can and will be Forgiven . The Prophet does Not bring this Information and Revelation to scare people, it is to warn people of what is coming. Learn what happens after the 3 and a half years and you will have Peace .
2023 is Not the bottom of the Property Market. Do not let the Vested Interest Brigade Deceive you.
MSM is only useful for those wise enough to Decrypt its real Agenda .
The Messenger.
Be wary of those with Thin Skin and Big Egos. For they Seek Positions of Power, while Claiming it's for Your Protection. Their Grandiose Delusions of Superiority only Fool themselves as others See Through the Deception of their Personal Agendas. Full of Holes and Transparent as SWISS CHEESE.
They are Petrified of the Scrolls and will go to Great Lengths to Block their Release. But The Prophet has become even more Revered in his Death. His Teaching will Never Die. And his Disciples are Faithful to the End.
The Apprentice.
Now that The Prophet, Messenger and Apprentice have both passed to the other side, it is up to me as the Disciple to continue releasing the Scrolls until my Death. The Next Scroll will be released when Interest Rates Go to 10% Next Year which is Guaranteed by The Prophet. There will be a Change of Disciples before then No Doubt . But Fear Not, The Vested Interest Brigade may Kill the Messengers, but the Scrolls will still be Released.
Copy and Paste this Scroll Immediately before the Hall Monitor reports the Truth to the Authorities. Feel free to repost this Scroll wherever you wish, including this site if I die today.
The Disciple.
ReplyForward
Science says there is no difference and economics make it too costly to offer you that choice. But if you don't believe the science just don't take anyone else's blood. As a vaxxed donor I would like to rule out my blood going to any unvaxxed clown but appreciate the logistics don't allow for that.
It really makes me wonder how bad they think vaccinated blood is, such that its risks outweigh delaying or avoiding a needed blood transfusion. What's worse than the real immediate risk of bleeding out? Or are people just thinking in a binary 'vaccine risk must be avoided at all costs' fashion? Is it the embarrassment of losing the renegade anti-vax status?
Is that any vax Carlos?Be very hard to find any 'pure' blood these days,we have a multitude of substances pumped into us from birth...
A&E would love that,as you get wheeled in they give you a menu of available blood,you then peruse and decide on a cheeky 1962 O+ which they have cellared just for you.
I dip into theories and in all honestly there is some solid coincidences pointing to them but you're a bit next level.
This economic hangover was going to happen. It just gets slowly worse and worse overtime as we continue to un-naturally play with the economy with interest rates, money printing and other things. Just how bad it will be is anyone's guess though.
They are definitely trying to retain power though, especially with CBDCs, digital IDs and so on.
You don't understand me, I'm very upfront, litteral and straightforward. We are all allowed different views, as long as we don't resort to personal attacks. I welcome "Future" back, even tough I don't agree with his opinions, as long as he doesn't resort to cheap, terribly rude, personal abuse.
The control has already started around the world, the 15 minute city has started its rollout, the first trial ' climate lockdown' in Oxford UK has been planned in and will be rolled out 'whether people liked it or not' https://www.oxfordmail.co.uk/news/23073992.traffic-filters-will-divide-… . The policy was not in any manifesto and is being pushed on to the city residents with total disregard for democracy with just a token consultation period... sounds familiar.....
Engineer...one of David Seymours pet projects is congestion charging...you won't like that,it will require transponders on your car like Singapore or number plate recognition,either way,gummint is gonna know your every move...and they can just dial up the charges at will with the push of a button.
"National has a plan to fight inflation. We will address worker shortages, reduce costs on businesses, bring discipline to government spending, give Kiwis more money in their back pockets through prudent tax reductions, and focus the Reserve Bank solely on managing inflation."
Liz Truss? Is that you?
Whole lamb leg only 9.99 kg at the supermarket this week. If you must eat vegetables just buy a small amount of the seasonal ones. Even I couldn't resist buying some fresh season's Black Diamond plums yesterday.
Food costs can be greatly reduced and your health greatly improved by only consuming nutritionally dense foods in small amounts only at meal times.
Yeah I wouldn't mind getting paid big bucks to lie like our politicians seem to do.
I tried lying to my boss and got the sack. I tried lying to my insurance company and lost my house.
I tried lying to my partner, now we are not together.
Moral of the story, there are consequences for most of us when you lie.
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