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Inflation Hits Families In The Shopping Trolley

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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