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

 


Price rises hitting low income families harder

16 July 2013

Price rises hitting low income families harder

“It’s good to see low increases in prices, but many of the increases are in areas that hit low income families hardest”, says CTU Economist Bill Rosenberg.

“For the lowest income 30% of our households, I estimate they have faced inflation over the year 0.2 to 0.3 percentage points higher than the official CPI. The increase in housing prices, particularly rents, up 2.1 percent for the year, hit low income families harder than others because they are a larger part of their incomes.”

“Middle and high income families are also hit by these big increases, including building costs and insurance which rose 9.9 percent in just the three months to June, but are more likely to be benefiting from still falling interest rates which are not measured in the official CPI”.

“Electricity prices are still rising much faster than other prices, up 2.6 percent in the three months to June, and 3.4 percent for the year. Essentials like this hit all households, but for low income households, a much greater proportion of their spending goes on energy. This big rise also confirms the need for changes to New Zealand’s electricity system to curb such big increases.”

“The very low inflation environment is an indication that the economy is still not firing on all cyclinders,” Rosenberg says. “There is no pressure on the Reserve Bank to push up interest rates from general price increases – but it faces a real problem with the Auckland housing market. That calls for targeted measures from both the Bank and Government rather than knocking the rest of the economy by raising interest rates.”

“It is also a good time for decent wage increases, exceeding inflation, to catch up from several years of stagnant incomes,” concludes Rosenberg.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Departure Speech: Governor-General’s State Farewell Luncheon

"...Unfortunately I was unable to get to the Antarctic, the Chatham Islands and the Kermadecs. A dicky heart thwarted our travel to the Antarctic; and even though I volunteered to parachute into the Kermadecs to join the Young Blake expedition, time, commitments and officials frustrated my plans to visit the Kermadecs and Chathams." More>>

ALSO:

New Research: Most Homeless People Working Or Studying

“The cost of housing has been rising without corresponding increases in income, whilst the number of state houses per capita has been in decline. Many low-income people are missing out on housing, whether we recognise them as ‘homeless’ or not. More>>

ALSO:

Post-Traynor: New Offender Info Sharing Plan

“This Bill delivers on that step-change by moving away from name-based records held by individual agencies to a shared, anchor identity based on unalterable information, such as fingerprints and facial recognition. It also gives agencies access to the drivers’ licence photo database and birth, death and marriages information." More>>

  • NZ Law Foundation - New $2M fund for research on information challenges
  • Littoral: New Ship To Deliver Enhanced Naval Capability

    Defence Minister Gerry Brownlee says the Government has approved a Ministry of Defence and New Zealand Defence Force recommendation to request tenders for a new naval ship to support littoral operations. More>>

    July:

    After King's Labour Snub: Māori Party And Kiingitanga To Work Together

    Māori Party Co-leaders Te Ururoa Flavell and Marama Fox met with Kiingitanga representatives in Wellington yesterday to discuss working together on key issues for the betterment of Māori. More>>

    ALSO:

    Waitangi Claim On Rehabilitation: The 'Justus' System For Māori Not Good Enough

    Closing statements at the Waitangi Tribunal case against Corrections called for immediate steps and a comprehensive review to address the high rate of Māori reoffending. More>>

    ALSO:

    Advice: PM Sets Rules For Ministers' Treatment Of Public Servants

    Prime Minister John Key has laid down the law about the way ministers and public servants should interact, saying ministers may not always like the advice they receive, but they must listen to it carefully, respectfully and professionally. More>>

    Gordon Campbell: On The Funding Changes In Special Needs Education, And Uber

    The plan to strip out the educational support for older “special needs” children in order to meet the existing shortfall in funding for special needs in early childhood education is so miserly and relentlessly stupid as to defy belief… More>>

    SPECIAL EDUCATION (& More):

    Online Learning Plans:

    Get More From Scoop

     

    LATEST HEADLINES

     
     
     
     
     
     
     
     
     
    Politics
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news