Cost Of Living

[Hesi]

Much comment around NZ about the price of doing a supermarket shop these days.

So I did a bit of digging

CPI

2021 - 3.9%

2022 - 7.2

2023 - should be around 6.0

That means something that cost $1, 3 years ago, should cost $1.18 now, an increase of 18%.  I think most people would not see that as excessive but would laugh at the suggestion that their bill had gone up only 18% in 3 years.  For the average family of 4, the spend was estimated at $400, 3 years ago, so that would be $472 now.

The reality is, many prices have gone up a lot more than that, probably 40-50%, and I would suggest it is because the supermarket duopoly is taking advantage of 'inflation', to push up prices a lot more, price gouging in other words.

I've bought a box of Kellogs Corn Flakes for as long as I can remember, it always used to cost $3.50, now costs $5.  That is an increase of 43%.  If we are paying the inflation adjusted price, it should be $4.13, so a big difference.  

Surprisingly the price of bread and milk has gone up only a small amount.  I guess the supermarkets know if they try their price gouging tricks on staple items like milk and bread it would attract too much attention.  A loaf of bread or a 2l bottle of milk at $6 would as I said attract too much attention.

Of course, the piss weak Commerce Commission, won't take this head on.

 

 

[Midnight Caller]

As I have tripped  back over the years to NZ, I have seen the sharp rise in goods and services. I don't know how the average  Kiwi survives without being loaded down with debt. I'm presuming  now that most mortgage borrowing is 7/8 times or more of the household  salary.  The  heavy reliance of imports is tipping NZ into the Pacific. Don't get me wrong I still love NZ, but it is a small fish in a big pond.The imagration  rates to Aus and beyond  tell a story that NZ unfortunately  can't compete salary  wise with other countries with the cost of living in the country. I would love to return to NZ, but at this point and time Nz falls well short in living costs and salaries for Mrs M and I.

[Hesi]

If you look at the Stats NZ website, who do the CPI, you find the below.

What does not compute to me, is that they are actually collecting and measuring the costs/prices.  Yet the figures they are getting of 7.2% in 2022 and 6.0%(est) in 2023, or approx 14% increase over 2 years.  How many people believe prices of food items have just gone up 14% over the last 2 years.  From the comments I regularly hear from friends and family, it is a hell of a lot more than that.

So what is missing here, anyone?

Consumers price index

The consumers price index (CPI) measures the changing price of the goods and services New Zealand households buy. It provides a measure of inflation. 

To calculate CPI we select a fixed 'basket' of goods and services. We choose the items and determine their relative importance based on spending patterns. The items in the CPI basket represent how New Zealand households spend their money.  

We collect the prices of the goods and services in the basket over time to measure how they change. 

You can find out about price changes for 11 CPI groups:

• food
• housing and household utilities
• health
• recreation and culture
• education
• communication
• clothing and footwear
• transport
• alcoholic beverages and tobacco
• household contents and services
• miscellaneous goods and services.

[Freda]

We'd better be hoping that the Mob and Black Power don't mobilize to answer the call.

Listening to some of the replies of ordinary folk when interviewed on the street alarms me.