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

Gordon Campbell: On Labour’s Policy Resurgence, And Alex Chilton

For much of this year, almost all the diversity in politics has been down at the retail end, where apparent differences reside in the tone, and in details. Up at the wholesale end – in the economic settings that drive the engine of politics – the story has been of convergence, exemplified by Labour and the Greens signing up to the Budget Responsibility Rules...

However, and only three months out from the election, there is finally some genuine good news. Twice this week, Labour has released policy that has well and truly gotten up the nose of the sort of lobby groups that it has spent most of 2017 trying to cultivate. More>>

 

Right In The Thiels: Just 12 Days In NZ Before Citizenship

DIA have received advice from the Ombudsman that a detail originally redacted from the citizenship file of Peter Thiel released in January for privacy reasons should be made available by 27 July. More>>

ALSO:

Domestic Violence And Teachers: Members’ Bills Ballot

The ballot was held, and resulted in the following bills being drawn:
54 Sentencing (Domestic Violence) Amendment Bill - Hon Nanaia Mahuta
16 Education (Teaching Council of Aotearoa) Amendment Bill - Chris Hipkins More>>

ALSO:

Legislation: Point England Housing Bill Passed

The passage of the Point England Development Enabling Bill through Parliament this evening will benefit Auckland with additional housing, help resolve Ngāti Paoa’s Treaty claim and improve the local environment and recreation facilities, Building and Construction Minister Dr Nick Smith says. More>>

ALSO:

Cyberducation: Digital Curriculum Launch And Funding Package

Consultation on new digital technologies content for the New Zealand Curriculum and Te Marautanga o Aotearoa, the Māori-medium Curriculum, was launched today by Education Minister Nikki Kaye. More>>

ALSO:

PM's Press Conference: Red Socks And Secret Tapes

Prime Minister Bill English began his post-cabinet press conference by explaining how well the National Party's annual conference went. He also mentioned today's announcement of changes to the EQC disaster insurance legislation and wished Emirates Team New Zealand well in the America's Cup. More>>

Max Rashbrooke: On How To Make Government More Open

International surveys, while often complimentary, have also pinpointed major weaknesses: political donations are badly regulated, for instance, and appointments to government boards frequently go to those with strong political connections. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election
 
 
 
  • PublicAddress
  • Pundit
  • Kiwiblog