Some actual data on price increases

An excellent data driven report by Sense Partners for Business NZ on what is contributing to the massive increases in prices we have experienced in NZ.

Firstly they find the average profit margin was 14.7% in 2019 and 12.7% in 2022, so has actually decreased.

The only industries that have had their profit margin increase was mining and transport.

Most usefully they calculated that of the 14% increase in prices from 2019 to 2022, the major factor was an increase in input costs, being 71% of the increase. An increase in labour costs was 15% of the increase and an increase in gross profits just 14%.