Yesterday Statistics New Zealand dealt a rather large blow to National’s election chances when it announced that the latest rate of inflation was 6.7%, a significant drop below the previous rate.
You could hear the fear in Nicola Willis’s voice on Radio New Zealand this morning. Instead of touring the country pretending to be concerned about poor people they may have to complain about something else.
The result is much lower than the predictions from most economists who were predicting inflation to be stable or increase. You have to wonder about their predictive skills or the methods that they use.
And food inflation was the biggest contributor to the increase which is not surprising given the storms that battered the country recently.
The next result will be keenly watched by the parties. If it lowers again it will blow an even bigger hole in National’s election prospects.
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