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

 

PARLIAMENT TODAY:

Nauru: Scholars Urge Minister To Act On Deteriorating Democracy

“Since the 2013 election in Nauru, there has been a series of disturbing developments on the islands that indicate a severe deterioration in the state of its parliamentary democracy and in the rule of law,” say the scholars. More>>

ALSO:

Foreign Affairs: NZ Begins Presidency Of UN Security Council

Prime Minister John Key has welcomed the start of New Zealand’s month-long Presidency of the United Nations Security Council in New York. More>>

ALSO:


Labour: Cash For Charter Schools, Mould For State Schools

“Recently released financial statements show the Whangarei charter school He Puna Marama received $3.9 million in government funding to the end of last year. Yet their audited accounts show they only spent $1.4 million on education, leaving almost $2.5 million over two years unaccounted for." More>>

ALSO:

Kiwirail Plans Shift From Electric: National Urged Not To Take Backwards Step

The National Government shouldn’t drag New Zealand backwards by replacing its climate friendly electric trains with carbon-polluting diesel trains, the Green Party said today. More>>

ALSO:

Capital Connection:

Harmful Digital Communication Bill Passes: Focus Must Be On Education

InternetNZ acknowledges the passage of the Harmful Digital Communications Bill into law this afternoon, and says that the sooner the education efforts at the heart of the legislation start, the better... More>>

ALSO:

3-Year Transport Plan: No Plans On Six Northland-Election Bridges

The Transport Authority’s decision to fund only four of the 10 bridges promised in National’s shameless Northland by-election bribe is a huge embarrassment for Transport Minister Simon Bridges, Labour’s Transport spokesperson Phil Twyford says. More>>

ALSO:

Gaza Blockade: Māori TV Crew Returning Safely From Israel

A Māori Television crew will be flown back from Israel after their boat was detained by the Israeli Navy while attempting to break the Gaza blockade. More>>

ALSO:

Family Violence: Increasing Reporting But Fewer Resolutions

“We are aware the Police have embarked on a significant programme of change in how they respond to family violence. The data suggests that adequate resourcing including investing in staff training, support and culture change will be required for this to be effective.” More>>

ALSO:

Health: NZ Children Still Suffer Rickets From Lack Of Vitamin D

Vitamin D deficiency continues to cause rickets in young New Zealanders, new University of Otago research has found. The researchers say that their finding suggests that at-risk mothers and children should be better targeted for Vitamin D supplementation. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news