Inflation up, up, up
Inflation for the year ending June 2022 was 7.3%, exceeding most market expectations.
This is higher than many of our trading partners. Here is NZ against our top 15 trading partners:
- US 9.1%
- UK 9.1%
- Italy 8.0%
- Thailand 7.7%
- Germany 7.6%
- New Zealand 7.3%
- South Korea 6.0%
- France 5.8%
- Singapore 5.6%
- Australia 5.1%
- Indonesia 4.4%
- Vietnam 3.4%
- Malaysia 2.8%
- UAE 2.5%
- China 2.5%
- Japan 2.5%
So the NZ inflation rate is higher than 10 of our top 15 trading partners and lower than five of them.
Inflation has an international component to it, but the fact we have higher inflation than many of our trading partners is because of our domestic decisions. Non-tradeable inflation is 6.3% – more than double the maximum target of 3%. Thanks Rod and Grant.