Westpac Analysis Details Food Price Increases and Inflation Lag in New Zealand
What happened
Westpac economists analyzed the trends in household prices in New Zealand, noting that the cost of many essential goods has risen faster than general inflation over the last decade. The average price for two litres of milk, for example, increased by 57% over 10 years, rising from $3.27 in 2016 to $5.12 this year. The report also detailed price increases for other items, including butter, which averaged a 157% rise.
From newstalkzb.co.nz
Why it matters
The analysis highlights the significant price increases in staple foods within New Zealand. The report noted that retail milk prices were influenced by a six- to nine-month lag from global market movements. Mark Smith commented on this price lag.
From newstalkzb.co.nz
Who's involved
- WestpacFinancial services provider whose economists published the analysis on New Zealand household price trends.
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The entities involved
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Mark Smith
British neuroscientist and physiologist
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Westpac
Australian bank and financial-services provider
- Westpac merged with Commercial Bank of Australia, which was founded as Bank of New South Wales, becoming one of Australia's largest financial institutions.
- Westpac is providing key inflation trend data to the RBA, influenced by the widening impact of the Iran conflict on the broader Australian economy.