Liam Dann needs to take a chill pill. Even low inflation spells gloom and doom for this muppet

Sometimes the Media party needs to replace their shit-tinted glasses.

Liam Dann is a case in point, thinking that low inflation spells gloom and doom.

Tomorrow fresh statistics will tell us that the cost of living is barely rising at all.

The Consumer Price Index for the September quarter is forecast to show inflation has fallen in the past three months and is only just above zero for the year .

Most economists are picking it will come in at 0.1 or 0.2 per cent for the year to September 30 – down from 0.4 per cent in the year to June 30.

That’s dangerously close to deflation and it will be treated as bad news by economists.

But many New Zealanders will be feel that the low inflation story doesn’t stack up with their daily experience. ?

That’s because one of the largest and most fundamental costs we face in life continues to rise more than anything else.

House price inflation – other than for new builds – is excluded from the CPI so if you are saving for a home or taking on a giant mortgage you’re not going to feel like the cost of living has fallen.

And those accommodation costs that the CPI does catch are rising faster than any other category.

If we look at the breakdown of that category in the last set of data, for the year to June 30, we see some significant rises.

The cost of a new build was up 5.6 per cent, rates rose 5.5 per cent, rental prices were up 2.3 per cent and property maintenance was up 2.9. Household energy was also up 2 per cent.

These things represent the largest fixed costs for many New Zealanders.

So it is nice that fuel costs and the price of electronic gadgets are lower, and that groceries bills aren’t rising very fast.

But despite occasional efforts to re-weight the CPI to reflect household, average inflation won’t feel like it matches the rise in the real world costs for many.

What a dick.

How many people buy houses on a ?day to day basis….not many if any. But everyone buys petrol?at least once a week and food daily.

Comparing large capital purchases with a basket of inflation measuring commodities is just dopey.

Then again, when you have a political agenda to bad mouth successes like low inflation then you can see why he still has his shit-tinted glasses on.

Inflation robs consumers. Low inflation means your money isn’t eroded. Tossers like Liam Dann though want bad news to shill all day long, so they find niggle in everything they say and do.

No wonder no one trusts the media anymore.

 

– NZ Herald

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