Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Don’t Overreact to Inflation, Warns CTU

Don’t Overreact to Inflation, Warns CTU

The inflation level is a sign of the growing economy and the Reserve Bank should not overreact and drive down economic growth along with the benefits it can bring, Council of Trade Unions economist Peter Conway said today.

The new inflation rate of 2.4 per cent, released by Statistics New Zealand, had been widely anticipated, Peter Conway said.

“The level is not a cause for major concern as inflation remains within the Reserve Bank’s one percent to three percent range.”

Wage rises were not to blame for pushing up inflation, he said.

“The labour market has been tight for over three years and predictions of wage inflation have not eventuated,” Peter Conway said. “House prices went up 20 per cent last year, but private sector wages only increased by around two per cent.”

Higher wages should logically flow from persistent labour shortages but this had not happened, partly because of the absence of genuine collective bargaining in huge parts of the labour market, he said.

Unions will factor in today's inflation figure to wage negotiations, he said. “However, wage claims are always based on a wide range of factors including industry trends, recruitment and retention, what was paid last time, ability to pay, productivity and equity issues.”

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

PM's Press Conference: Pike Re-Entry Agency

At today's post-cabinet press conference Prime Minister Jacinda Ardern was joined by Minister Responsible for Pike River Re-entry Andrew Little to announce plans for the new agency for re-entry of the mine.

The Pike River Recovery Agency, Te Kahui Whakamana Rua Tekau ma Iwa, will be officially established on 31 January 2018 and will work with the Pike River families with the intention of manned entry of the drift before March 2019. More>>


Foreign Affairs: Patrick Gower Interviews Jacinda Ardern

Prime Minister Jacinda Ardern says discussions have already begun on how to bring climate change refugees into New Zealand under a Pacific seasonal employment plan... More>>


Gordon Campbell: On The Centre Right’s Love Of ‘Nanny State’

You’d almost think it was 2005 again. That was a time when the rugged individualists of the centre-right were being beset by government regulations on the nature of light-bulbs, the size of shower heads, the junk food available at school tuck shops and other such essentials... More>>

Speaking Of Transport: Public Engagement On Wellington Scenarios

“Our work on possible solutions for Wellington’s transport future is ongoing, but has progressed to the stage where we’re ready to share our ideas with the public and seek their feedback to help guide our next steps...” More>>


Parental Leave: National's Time-Sharing Change Fails

National has proposed a change to the Parental Leave and Employment Protection Amendment Bill that would allow both parents to take paid parental leave at the same time, if that is what suits them best. More>>


Train Free Thursday: Workers Strike To Defend Terms Of Employment

"They signed up to these conditions a year ago when they got the contract for Wellington's rail services. Now they're trying to increase profits by squeezing frontline workers." More>>


Seclusion: Ombudsman Emphasises Importance Of Monitoring

Disability Rights Commissioner Paula Tesoriero says that while there have been changes to the Education (Update) Amendment Act 2017 to prohibit the use of seclusion, the report is an important reminder of the importance of regular monitoring of schools. More>>





Featured InfoPages

Opening the Election