Podcast Appearances
Keep in mind that their inflation target is over the medium term, so they're allowed to so-called look through little spikes in inflation for various different things.
Yeah, I mean, for me, headline number 3.1% inflation in the year to Q4 last year.
So above the Reserve Bank's target, only slightly, but still above.
You know, they've got that 1% to 3% target band over the medium term.
So yeah, definitely not ideal.
It was higher than what the Reserve Bank had been anticipating.
don't have the luxury of revising their forecasts every week or month or whatever that some of the bank economists can do so in the meantime the bank economists had actually raised their forecast so you know it wasn't it was pretty much in line with what bank economists have been saying but that was after they had made revisions so um either way you know still above that target as i say the uh the non-tradable inflation so you sort of more domestically based stuff it was three and a half percent now
That was unchanged from Q3, but 3.5%, still not ideal.
It's above that 1-3% target band.
And tradable inflation, your sort of imported type stuff or stuff made here that competes with imports, went from 2.2% to 2.6%.
So that's where the overall increase came from, was that tradable component increase.
um now that's 2.6 still kind of within the target yep that's that's kind of good but but that's where the overall increase still came from uh and yeah i mean things like individual items electricity council rates uh you know home insurance or different types of insurance i see health insurance has been going up quite a lot um petrol prices up so yeah there were a lot of things actually that now some of these things within reserve banks control some not um but either way
the the inflation came across quite a few things and actually i think i saw stats new zealand say something like you know if you look at all the components that go into the cpi and measure how many went up and how many were flat or how many went down you know um actually the the proportion of goods and services that went up in q4 was was higher than it's been quite some time so
i suppose that's a wee bit of a concern not only the 3.1 figure above target but also some ways the broad-based nature of it you know a lot of things actually went up in price so um yeah those those items are listed but generally not a great result i suppose you know from from the perspective of wanting inflation to be not only within target but trending lower as well so um yeah a wee bit concerning
Yeah, so there's a bunch of things to talk about here.
I mean, remind me to come back to my overall view right at the end if I forget.
But I mean, there's no core inflation measure as such.
You know, it's not like Stats New Zealand publishes that here's core inflation.
So there's a little bit of judgment in here, a little bit of subjective thing.