The government’s plans to fully deliver its promised tax cuts at next month’s budget must be in doubt, as the economy falters and the fiscal position continues to get squeezed. Compared to the government’s 2023 Budget, the deficit is tracking to be $1.8b larger than... Read

Economic pressures are getting real for people this year, as higher mortgage rates continue to suck more money out of household budgets, and a swathe of recent job losses undermine income security. Infometrics’ latest economic forecasts show annual GDP and private consumption spending growth briefly... Read

The unprecedented migration surge since mid-2022 has seen a net 110,000 working-age people added to the population during the last 12 months. This outcome is a flow-on effect from the labour market disruption caused by the borders being shut during COVID-19. Businesses have needed to... Read

The annual increase in the average cost of goods that suppliers charge supermarkets has slowed further, with the Infometrics-Foodstuffs New Zealand Read

Renters across New Zealand are feeling the squeeze as annual new rentals inflation reaches 5.1%pa. Excluding the mid-2022 peak, annual average rental inflation over the year to February 2024 is at its fastest rate since this series began in 2008. Read

We economists can be a tactless bunch. Last week’s announcement that the economy had contracted for the fourth time in five quarters was greeted with comments about how the recession was necessary, and that the extent of the contraction only highlighted to serve how overheated... Read

High inflation in recent years has prompted much discussion about how households are adjusting their spending to cope. Although wages have been increasing too, meaning that households can also afford more, we haven’t had a clear idea of the changing preferences and priorities that dictate what households are spending more or less on. Read

Electric vehicle (EV) uptake in New Zealand has been accelerating over the last few years. Uptake was helped along with financial incentives including the Clean Car Discount scheme and the exemption of EVs from paying road user charges (RUC). With the discount scheme gone and EV owners about to start paying RUC, the trajectory is likely to change. Read

The annual average increase in the cost of goods suppliers charged supermarkets is now at its slowest since the end of 2021. Costs are still rising – just at a much less intense pace than a year ago. The Infometrics-Foodstuffs New Zealand Read

The stock of homes available for purchase on realestate.co.nz increased in February to its highest level since 2015, as more people listed their properties for sale. In the last five years, monthly new listing numbers onto the market have only been higher than February’s total... Read