David Carter National Associate Finance Spokesperson

Monday 15 October 2001

Inflation hits families in the shopping trolley

New Zealand families have been hit in the shopping trolley by rising inflation with grocery bills now nearly 11% higher than in December 1999, National's Associate Finance spokesman David Carter said today.

The September Quarter Consumer Price Index, released today, shows inflation rose 0.6% in the quarter to be 2.4% higher than this time last year. Food prices rose 1.8% for the quarter, taking the annual increase to 8%.

"Food prices are now nearly 11% higher than in December 1999. That reflects a dismal performance by the Government. It's no surprise that many foodbanks are seeing more people coming through the doors.

"The annual food price increase of nearly 8% is the largest since June 1990, in other words, the biggest food price increase for more than a decade! And that previous high occurred due to a one-off increase in GST!

"With food prices taking such a jump, household budgets are under huge pressure and it's the basics that are leading the charge. To make matters worse, First Electric have today announced an average 6% price rise for customers in Wellington and Christchurch.

"It's the families on low and fixed incomes that will be feeling the pinch the most. Labour is letting down the very people it promised to help," David Carter said.

Ends

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Gordon Campbell: On the Sony cyber attack

Given the layers of meta-irony involved, the saga of the Sony cyber attack seemed at the outset more like a snarky European art film than a popcorn entry at the multiplex.

Yet now with (a) President Barack Obama weighing in on the side of artistic freedom and calling for the US to make a ‘proportionate response’quickly followed by (b) North Korea’s entire Internet service going down, and with both these events being followed by (c) Sony deciding to backtrack and release The Interview film that had made it a target for the dastardly North Koreans in the first place, then ay caramba…the whole world will now be watching how this affair pans out. More>>