Latest / The Kākā by Bernard Hickey
The Government just administered an inflation shock
Briefly in this deep-dive below on the political economy of administered inflation below:
* The Government was elected in 2023 on a wave of public revulsion at inflation, which voters blamed on the then-Labour Government. Initially, inflation fell through 2024 because global oil and food prices had fallen in the previous 18 months. But it has come surging back in 2025, thanks to another burst of global food price inflation and a surprising cascade of new and higher Government and council fees, fines, rates and charges.
* This administered inflation is immune to higher interest rates and was…
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