Out of Control

Inflation bites where it hurts – 18 Jan 2008 – NZ Herald: New Zealand National news

The government is still in denial over inflation. Everywhere else in the world including Hugo Chavez’s Venezuela, increased social spending is blamed for dramatically increasing inflation. Not here in little ole New Zealand where an inept ex-history lecturer, who himself isn’t even on a sound financial footing despite a lifetime of sucking off the public tit, continually says it isn’t government spending to blame.

I also wonder why petrol is the basket of goods for measuring inflation? It isn’t like the price of that is in our control.

Meanwhile Kiwis take home pay is being robbed silently by increasing inflation.

[quote]”Inflation is well and truly chewing into the disposable income of the average New Zealander, and that’s before you take account of rising interest rates,” Bank of New Zealand economist Stephen Toplis said.

Petrol rose 5.4 per cent in the quarter, making 16.9 per cent for the year; food prices rose 1.5 per cent, or 4.4 per cent for the year; and electricity rose 1.2 per cent, or 6.5 per cent for the year.[/quote]
This will be bad news for Labour and their delivery of there long awaited tax cuts. I predict we will see those evaporate quicker than a socialists promise.

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