Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Explaining the high prices of goods and services in NZ

New productivity research: Explaining the high prices of goods and services in New Zealand


The Productivity Commission commissioned Professor Norman Gemmell, the Victoria University of Wellington Chair in Public Finance, to compare consumer prices in New Zealand with those overseas and to explain any differences identified.

The report has now been released: Explaining international differences in the prices of tradables and non-tradables (with a New Zealand perspective)

• This report follows the one published in March: The prices of goods and services in New Zealand: An international comparison
• Also available are an infographic and 4-page summary (of both reports)
• Short link for any tweets: http://bit.ly/nzpri

Professor Gemmell is giving a public lecture today at VUW at 4pm.

Using World Bank data, Professor Gemmell shows that prices are relatively high in New Zealand compared to other countries. This is true for goods and services which face no direct foreign competition (non-tradables) and for those that are traded internationally or in competition with foreign goods (tradables).

It is impossible to say whether relative consumer prices are “too high” without also understanding what is driving these prices, as they may, for example, reflect intrinsic costs of production in New Zealand. However, they may also reflect a problem in our markets, such as a lack of competition or access to international markets in key areas. The report highlights that where prices are high this may be due to a high cost of capital, small population and low levels of skilled labour per capita. It also shows that high non-tradables prices and market access issues (including transport costs) lead to higher prices of tradables.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news