Recently I saw on television, the Prime Minister Chris Hipkins crowing that inflation was coming down.
Presumably he was referring to the March 2023 figure of 8.5 per cent, reducing to 6.4 per cent in June.
What Chris fails to appreciate is the significance of inflation increasing by an cumulative 32.2 per cent in the six years he and his cohorts have been in government.
Goods and services costing $100 six years ago now cost $132. Even if inflation drops to say five per cent in the next year that $132 will climb to $139.
I find it astounding that the Labour Government, and indeed the world, has not learnt from the most recent experience in the 1970s.
Once inflation it starts climbing, you can never go back.
Apart from oil prices, inflation is basically controlled by our government policies. Labour's excesses has created a disaster which has to be stopped, mainly by massive interest rate hikes, but real recovery in terms of going back to what was in the past, is impossible.
Bill Capamagian, Tauranga City.
Posted: 06:00am Fri 27 Oct, 2023