Tag Archives: Consumer Price Index (CPI)

‘Low inflation’ v House price inflation

deflation-the-japan-times[Japan Times]

### NZ Herald Online 12:00 PM Tuesday Oct 18, 2016
No inflation? So why doesn’t it feel like it?
By Liam Dann – NZ Herald business editor at large
If yesterday’s Consumer Price Index, showing just 0.2 per cent inflation in the past year didn’t match your experience of rising prices, fear not, there is a new set of data that could offer a more realistic reflection of Kiwi household costs. The CPI for the year to September came in slightly higher than the predictions of most economists but still takes the economy dangerously close to deflation – a phenomenon where falling price expectations start to suppress economic growth. […] Meanwhile, the Household Living-costs Price Index (HLPI) gets much less attention from economists but has been designed over the past three years to reflect the fact that real world inflation varies greatly depending on your household wealth and expenditure, Matt Haigh [Statistics NZ consumer prices manager] said. It offers data for specific sub-sections of New Zealand such as beneficiaries, Maori, superannuitants, five different income groupings and five expenditure groups. In doing so it captures inequalities of price inflation which the CPI does not. So for example rent, which was up 3.4 per cent for the year in Auckland, is factored into the CPI with a weighting of 10 per cent. But, said Haigh, in reality for many renters it is likely to be more like 40 per cent of total expenditure. That weighting is more accurately reflected in the HLPI – especially in the lower income groups.
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█ On November 8 Statistics New Zealand will provide its first live quarterly update for the HLPI data, with details for the year to September, and it should provide more insight for those looking at inflation from a social or political perspective. Backdated HLPI data for the year to September 2015 is already available on the Statistics NZ website.


deflationary-cycle-web-world-cycles-instituteDeflationary cycle web [World Cycles Institute]

For many New Zealanders the low inflation story doesn’t stack up with daily experience. That’s because one of the largest costs we face in life, house price inflation, continues to rise more than anything else.

### NZ Herald Online 6:41 AM Tuesday Oct 18, 2016
Liam Dann: Inflation now at dangerously low level
OPINION Inflation data due today is tipped to show the economy skating dangerously close to deflation. Economists’ forecasts for the September quarter Consumer Price Index have inflation falling in the past three months and now only just above zero on an annualised basis. Most economists are picking it will come in at 0.1 or 0.2 per cent for the year to September 30 – down from 0.4 per cent in the year to June 30. The fall is expected to be driven by lower transport costs as oil slumped again in the quarter while housing costs are likely to be the largest rising category. Persistently low inflation is considered one of just a few dark spots in another otherwise rosy economic picture, although it is consistent with a number of other economies right now.
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Posted by Elizabeth Kerr

This post is offered in the public interest.


Filed under Business, Democracy, Economics, Finance, Media, Name, New Zealand, People, Politics, Public interest

DCC debt

### stuff.co.nz Last updated 05:00 11/03/2012
Councils borrowing billions
By Lois Cairns
Local councils have clocked up $1606 in debt for every man, woman and child in New Zealand at a time when the amount they expect people to pay in property taxes is rising steeply. Government figures released to the Sunday Star-Times show local councils are charging, per capita, an average of $951 in rates and that nationally, rates have risen an average of 7 per cent a year for the past decade. Over the same period council debt has ballooned from $1.8b to $7b.

Local Government Minister Nick Smith is worried councils are stretching themselves too far and has signalled changes to the sector. He is set to deliver policies in the next two months so local government can control costs and keep rate rises in line with the Consumer Price Index (CPI), which has risen by around 2.2 per cent per annum over the past decade.

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The SST cites Council debt per capita eg Kaipara District $4142; Dunedin City $1920 (Source: Statistics New Zealand)… making DCC almost look good by comparison.

The problem with this is it’s not showing up Dunedin’s average debt per ratepayer at a massive $11,056 to 30 June 2011, compared to Kaipara at $4,395 – also derived from councils’ audited annual reports. See Russell Garbutt’s comment https://dunedinstadium.wordpress.com/2012/02/21/kaipara-this-time/#comment-22152

Lois Cairns for SST has gone off message for Dunedin’s debt crisis by using the alternative set of stats.

Dunedin City’s average debt per ratepayer currently sits at est. $16,000. Note the escalation from 30 June.

Related Posts:
9.3.12 DCC considers writing off ORFU’s $400,000 debt
4.3.12 The Press: fresh doubt on economic viability of stadium
27.2.12 DCC Statement of Public Debt Summary as at 31 December 2011
21.2.12 Kaipara this time
26.1.12 Stadium debt goes to 40-year term
17.1.12 DCC living beyond its means [all spending and debt not declared]

Posted by Elizabeth Kerr


Filed under Business, CST, DCC, DCHL, DVL, DVML, Economics, Media, ORFU, Politics, Project management, Sport, Stadiums

Directorships and council-owned companies

### stuff.co.nz Last updated 05:00 10/03/2012
So you want to be a director?
By Tom Pullar-Strecker
Harsh light of day: Finance company directors in court have provided a “wake-up call” to all board members, with some wondering if the work is worth it.
At the Institute of Directors’ offices in Featherston Street, 20 high-fliers have gathered for a day-long course that is designed to help prepare them to take a seat as a director at a boardroom table. Contrary to stereotypes, there is little grey hair, nine are female and none are in handcuffs. Their reasons for attending the course are similarly quite varied.

The institute has 5500 members and, among them, the median fee for a directorship is about $35,000, chief executive Ralph Chivers says. For positions on boards of companies with a turnover of more than $500 million a year, that rises to about $70,000. However, there are probably no more than 500-600 people sitting on boards of the top-100 listed and private companies and they are by and large people “at the top of their game”.

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### ODT Online Sun, 11 Mar 2012
Keeping it all above board
By Mark Price
With Dunedin City Council-owned companies undergoing a restructuring, and question marks over who will fill more than a dozen directors’ seats, what is required of an effective company director.
J. Denham Shale was appointed by the council after the “Larsen review” delivered the council a list of recommendations to improve the running of its companies – city councillors being barred from the company boardrooms the most radical of them.

Shale’s arrival, along with that of deputy Bill Bayliss, of Queenstown, coincided with the resignation of some members of the old holding company board and the sacking of the others, including chairman and city councillor Paul Hudson. Shale and Bayliss are just the interim board – given 12 months to restructure the holding company and its subsidiaries. Recruiting new directors is part of that job.

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Posted by Elizabeth Kerr

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Filed under Business, Economics, Geography, People, Politics, Project management