New Zealand's annual inflation rate is 7.2 percent.

Stats NZ has just released its Consumers Price Index for the 12 months to December 2022.

It follows a 7.2 percent annual increase in the September quarter.

The country's had months of high inflation - with prices frequently rising faster than at any time since the early 1990s.

After housing and household utilities, the next largest contributor to the annual increase was food prices.

NZ Herald Business Editor at Large Liam Dann joined Kerre to chat about what this means for New Zealanders.

LISTEN ABOVE

New Zealand's annual inflation rate is 7.2 percent.
Stats NZ has just released its Consumers Price Index for the 12 months to December 2022.
It follows a 7.2 percent annual increase in the September quarter.
The country's had months of high inflation - with prices frequently rising faster than at any time since the early 1990s.
After housing and household utilities, the next largest contributor to the annual increase was food prices.
NZ Herald Business Editor at Large Liam Dann joined Kerre to chat about what this means for New Zealanders.
LISTEN ABOVE

Join Kerre Woodham one of New Zealand’s best loved personalities as she dishes up a bold, sharp and energetic show Monday to Friday 9am-12md on Newstalk ZB. News, opinion, analysis, lifestyle and entertainment – we’ve got your morning listening covered.

Kerre Woodham Mornings Podcast

Liam Dann: NZ Herald Business Editor on the rising inflation rates

The report out that workplace bullying is costing the country in terms of productivity and lost earnings is nothing new.  Bullying and harassment are conservatively estimated to cost employers $1.5 billion a year, according to a new study by KPMG, published for Friday's Pink Shirt Day.   

Years ago, there was a story on workplace bullying that surfaced in the news and the Department of Labour had to scramble to get extra staff to man the phones when a helpline they set up to take calls was overwhelmed. They had to keep it running for far longer than they ever imagined they would need to, such was the response.

I'd like to think things have changed since I was a young journalist, but I don't think they have, and the report seems to confirm they have not.

I grew up in newsrooms which were no place for the fainthearted.  Sure, there was no physical hazing or pranking, but journos are good with words and there was some brutal sledging.  I wasn't often on the receiving end of it, but on the rare occasion, I had a boss lean over me screaming into my face that I was effing useless and that I didn't deserve to be there and who the ‘f’ had I slept with to be on the team was fairly memorable.  To be fair, I was a bit rubbish. Most people new to any job make mistakes and haven't developed into the best versions of themselves, and yes, I probably didn't deserve to be there. I knew I hadn't slept my way into the job and the others knew I hadn't so that bit didn't really matter. So, after a bit of a cry in the toilets and being mopped up by my colleagues it was onwards and upwards.  A different person might have been scarred for life. Given up on their chosen career and done something else.   

And I rather fear it is still happening because today’s study used data from the Human Rights Commission’s 2022 report, which surveyed 2500 workers across Aotearoa and found 29% of workers experienced at least one bullying or harassment behaviour in the year before the survey.  The report found that 58% of the total cost of ($780m) in 2021-22 arose from impacts on female workers as they are disproportionately affected by bullying or harassment, according to the report. Or maybe it’s more likely that they will report it or that they will find offence and hurt from words other workers might not.

It found that every worker affected cost employers about $1600, which could be broken down into absenteeism ($219), presenteeism ($450), where you’re there, but you’re not there. You’re at your desk but you’re not working. Increased staff turnover ($674), and internal procedures such as dealing with complaints ($270).  Big numbers, no doubt about that.  

At least now there are procedures for dealing with complaints. Back then, it was ‘suck it up and get on with it’. But I mean, nobody in the olden days was trained to be a boss. After a certain period of time you were promoted, you became one whether you were good at dealing with people or not. These days, I think the training is a little bit better if you want to be a manager. You’re given a bit more support once you become a manager, but back then, it just simply didn’t happen.

But it’s also difficult to know how people are going to receive your words. I mean, we were talking about this before and the boss is, you know, sometimes he will say ‘I'd like you to do this’, and a young worker will say, ‘yeah, no, not really for me.’ And he goes ‘it wasn't, this isn't a workshop. This is, this is not a discussion. This is what I need you to do to do your job.’ And that can be construed in this day and age as bullying. 

A bit of banter between work mates, fine. A bit of banter with the wrong workmate? Not fine.

It all has to be so nuanced, doesn't it? And I know that I have got the height of a rhinoceros, I know that I will go for the one liner wherever I can and sometimes that can be hurtful. So, I have tried to give younger workers, you know, when they feel that they might, I might have gone too far, a way of letting me know that. I know that I'm older, I've been around longer,  I can be bolshy, so I try to let them know that they can tell me if I'm a bit much. So far they haven't, and I hope that's not because they're not cowering in their crocs.

I try to be mindful that we're all of different generations, that we all grew up with different expectations. But it must be incredibly difficult to manage when you are a manager with numerous generations of workers. When you need a job done. When people respond in different ways to different instructions. 

I have no doubt that there are some toxic, nasty, petty people who exist to make others' lives misery, but I do sometimes wonder whether some of these figures Are not toxic bullying but crossed wires.

The report out that workplace bullying is costing the country in terms of productivity and lost earnings is nothing new.  Bullying and harassment are conservatively estimated to cost employers $1.5 billion a year, according to a new study by KPMG, published for Friday's Pink Shirt Day.    
Years ago, there was a story on workplace bullying that surfaced in the news and the Department of Labour had to scramble to get extra staff to man the phones when a helpline they set up to take calls was overwhelmed. They had to keep it running for far longer than they ever imagined they would need to, such was the response. 
I'd like to think things have changed since I was a young journalist, but I don't think they have, and the report seems to confirm they have not. 
I grew up in newsrooms which were no place for the fainthearted.  Sure, there was no physical hazing or pranking, but journos are good with words and there was some brutal sledging.  I wasn't often on the receiving end of it, but on the rare occasion, I had a boss lean over me screaming into my face that I was effing useless and that I didn't deserve to be there and who the ‘f’ had I slept with to be on the team was fairly memorable.  To be fair, I was a bit rubbish. Most people new to any job make mistakes and haven't developed into the best versions of themselves, and yes, I probably didn't deserve to be there. I knew I hadn't slept my way into the job and the others knew I hadn't so that bit didn't really matter. So, after a bit of a cry in the toilets and being mopped up by my colleagues it was onwards and upwards.  A different person might have been scarred for life. Given up on their chosen career and done something else.    
And I rather fear it is still happening because today’s study used data from the Human Rights Commission’s 2022 report, which surveyed 2500 workers across Aotearoa and found 29% of workers experienced at least one bullying or harassment behaviour in the year before the survey.  The report found that 58% of the total cost of ($780m) in 2021-22 arose from impacts on female workers as they are disproportionately affected by bullying or harassment, according to the report. Or maybe it’s more likely that they will report it or that they will find offence and hurt from words other workers might not. 
It found that every worker affected cost employers about $1600, which could be broken down into absenteeism ($219), presenteeism ($450), where you’re there, but you’re not there. You’re at your desk but you’re not working. Increased staff turnover ($674), and internal procedures such as dealing with complaints ($270).  Big numbers, no doubt about that.   
At least now there are procedures for dealing with complaints. Back then, it was ‘suck it up and get on with it’. But I mean, nobody in the olden days was trained to be a boss. After a certain period of time you were promoted, you became one whether you were good at dealing with people or not. These days, I think the training is a little bit better if you want to be a manager. You’re given a bit more support once you become a manager, but back then, it just simply didn’t happen. 
But it’s also difficult to know how people are going to receive your words. I mean, we were talking about this before and the boss is, you know, sometimes he will say ‘I'd like you to do this’, and a young worker will say, ‘yeah, no, not really for me.’ And he goes ‘it wasn't, this isn't a workshop. This is, this is not a discussion. This is what I need you to do to do your job.’ And that can be construed in this day and age as bullying.  
A bit of banter between work mates, fine. A bit of banter with the wrong workmate? Not fine. 
It all has to be so nuanced, doesn't it? And I know that I have got the height of a rhinoceros, I know that I will go for the one liner wherever I can and sometimes that can be hurtful. So, I have tried to give younger workers, you know, when they feel that they might, I might have gone too far, a way of letting me know that. I know that I'm older, I've been around longer,  I can be bolshy, so I try to let them know that they can tell me if I'm a bit much. So far they haven't, and I hope that's not because they're not cowering in their crocs. 
I try to be mindful that we're all of different generations, that we all grew up with different expectations. But it must be incredibly difficult to manage when you are a manager with numerous generations of workers. When you need a job done. When people respond in different ways to different instructions.  
I have no doubt that there are some toxic, nasty, petty people who exist to make others' lives misery, but I do sometimes wonder whether some of these figures Are not toxic bullying but crossed wires.

Kerre Woodham: Workplace bullying or crossed wires?

Finances are tough for many Kiwis at the moment, with costs skyrocketing across the board.

Mortgages are going up, as is inflation, food costs, gas, and electricity. Banks are expecting the value of “bad mortgage debt” to increase by 40% by the end of 2024, and around 90% of the country’s fixed mortgage debt has an interest rate about 4%.

An estimated 40,000 people had their power cut in 2023 due to unpaid bills, and one in five had trouble paying their monthly bill on time.

Much like low earners, middle-income taxpayers are living paycheque to paycheque, struggling to keep up with increasing costs amidst calls for more taxpayer funded benefits. 

Donna, a caller on Kerre Woodham Mornings, is one such taxpayer. Her yearly income is around $90,000, which she said becomes only $70,000 after tax and over half of which then goes towards her mortgage.

“I can’t go to my boss and just say, ‘hey, give me a pay rise’ more than once a year,” she told Kerre.

“And even then, I’m lucky, you know, if it happens.”

Her income goes not only to her mortgage and her general living expenses, but also to rates and life insurance, to ensure she has some stability should she become disabled.

“I’m 57, so I’m nowhere near getting a benefit, and all these extras that the government uses taxpayers’ money for don’t go to people like me.”

“I’m not saying they should,” Donna explained.

“I’m just saying I can’t afford any more.”

It’s becoming more and more difficult to build up a decent financial safety net, as any spare money can quickly get sucked up by unexpected costs that would be minor or inconsequential in any other situation.

Donna said that she used to have three months' worth of looking forward in savings, but now she’s literally living paycheque to paycheque.

“I hurt my back three and a half weeks ago and I have a regular appointment to see the doctor this week, and I couldn’t afford to go any earlier,” she told Kerre.

While the appointments are only $20, that’s $20 of an already dwindling supply as all of her payments went out the night before. 

“I mean, I get it.”

“I try to help people, you know, if I see someone who’s sitting on the street, even if I can just give them a smile and say’ hello, how are you?’ I try to do that,” she continued, mentioning that she buys people sandwiches when she can, but can’t do much more than she already does.

“I don’t get any extra help, and I’m not asking for it,” she reiterates.

“Everyone’s going on about these, what’s happening with this coalition with giving tax back very shortly, you know what? I need it.”

“I need that $20 a fortnight that I’m going to get.”

While it’s only a small amount, Donna said she’s tired of hearing politicians fight when people are struggling to survive. 

"I live in South Auckland and they’re all... it’s all around me and it’s just, no one... I don’t know what else to say. I don’t know what else to do or how to stop it.”

“I just feel so helpless.”

LISTEN ABOVE

Finances are tough for many Kiwis at the moment, with costs skyrocketing across the board. 
Mortgages are going up, as is inflation, food costs, gas, and electricity. Banks are expecting the value of “bad mortgage debt” to increase by 40% by the end of 2024, and around 90% of the country’s fixed mortgage debt has an interest rate about 4%. 
An estimated 40,000 people had their power cut in 2023 due to unpaid bills, and one in five had trouble paying their monthly bill on time. 
Much like low earners, middle-income taxpayers are living paycheque to paycheque, struggling to keep up with increasing costs amidst calls for more taxpayer funded benefits.  
Donna, a caller on Kerre Woodham Mornings, is one such taxpayer. Her yearly income is around $90,000, which she said becomes only $70,000 after tax and over half of which then goes towards her mortgage. 
“I can’t go to my boss and just say, ‘hey, give me a pay rise’ more than once a year,” she told Kerre. 
“And even then, I’m lucky, you know, if it happens.” 
Her income goes not only to her mortgage and her general living expenses, but also to rates and life insurance, to ensure she has some stability should she become disabled. 
“I’m 57, so I’m nowhere near getting a benefit, and all these extras that the government uses taxpayers’ money for don’t go to people like me.” 
“I’m not saying they should,” Donna explained. 
“I’m just saying I can’t afford any more.” 
It’s becoming more and more difficult to build up a decent financial safety net, as any spare money can quickly get sucked up by unexpected costs that would be minor or inconsequential in any other situation. 
Donna said that she used to have three months' worth of looking forward in savings, but now she’s literally living paycheque to paycheque. 
“I hurt my back three and a half weeks ago and I have a regular appointment to see the doctor this week, and I couldn’t afford to go any earlier,” she told Kerre. 
While the appointments are only $20, that’s $20 of an already dwindling supply as all of her payments went out the night before.  
“I mean, I get it.” 
“I try to help people, you know, if I see someone who’s sitting on the street, even if I can just give them a smile and say’ hello, how are you?’ I try to do that,” she continued, mentioning that she buys people sandwiches when she can, but can’t do much more than she already does. 
“I don’t get any extra help, and I’m not asking for it,” she reiterates. 
“Everyone’s going on about these, what’s happening with this coalition with giving tax back very shortly, you know what? I need it.” 
“I need that $20 a fortnight that I’m going to get.” 
While it’s only a small amount, Donna said she’s tired of hearing politicians fight when people are struggling to survive.  
"I live in South Auckland and they’re all... it’s all around me and it’s just, no one... I don’t know what else to say. I don’t know what else to do or how to stop it.” 
“I just feel so helpless.” 
LISTEN ABOVE

Donna: Middle-income caller on crushing costs and living paycheque to paycheque

If you woke up this morning and you turned on the heater because it was a bit chilly, not as chilly as it has been, but a bit chilly, good for you. Did you think about the cost? If you didn’t, lucky you.

An estimated 40,000 New Zealand households had their power cut due to unpaid bills in 2023, which is a phenomenal number of households. One in five had trouble paying their monthly power bill and this is at a time when the “big four” power companies are earning more than $7 million every day while some households struggle to heat their homes.

These figures are according to Consumer NZ. According to their financial reports, Meridian, Contact, Genesis and Mercury had combined earnings of $2.7 billion over the last year – about $7.4m a day.  But while the consumer watchdog says the numbers are a bad look for the generation and retail power companies (retailers), the industry says it is ploughing earnings back into developments to help New Zealand transition to a carbon-zero economy. 

So, they’re not all just bloated fat cats puffing on cigars with the profits, and those aren't the profits, those are just the earnings, they are putting any profits back into transitioning to a carbon zero economy, so the wind farms and the like.

Consumer NZ chief executive Jon Duffy said 60% of New Zealanders were concerned about the cost of energy and “the optics of huge profits at the height of a cost-of-living crisis aren’t great.” It’s the same problem with the banks, they’re making profits while people are struggling to pay the rent and to pay the mortgage.

The coalition government, mindful of this. has continued the Winter Energy Payment introduced by the Labour Government to help with the cost of heating homes during winter but Auckland law professor Jodi Gardiner says that doesn't cover nearly enough households who are around the edges of poverty.

If you’re not getting the Winter Energy payment, it’s because you don’t qualify. It arrives in your bank account automatically from the first of May through to the end of September, and if you’re entitled to it, you’ll be receiving it. Jodie Gardner says not nearly enough families are being taken into account for that Winter energy payment, and besides, it doesn’t go far enough.

Many New Zealand houses, particularly social housing, were built during the era of cheaper electricity and were reliant for warmth on electric heating rather than insulation. Now, that’s changed with the Healthy Homes legislation being passed, but again, Kainga Ora and the statehouse providers were given longer to ensure their homes meet Healthy Home standards than private landlords. So, there are still people living in poorly insulated homes, drafty homes, who are reliant on electricity for their warmth and their cooking, and for everything else.

It is estimated that now 25% of these occupants nationwide and more than 40% in the South suffer energy poverty, contributing to avoidable hospitalisation. So, you have a choice if you’re on limited income, either a benefit, or the super, or wages that cannot be raised, you either pay the power bill or you buy food, or you know, you have to make those sorts of crunch decisions.

Jodie Gardner says a return to state ownership of electricity isn't realistic right here right now, she argues a simpler – and more appropriately targeted – approach is to implement “social tariffs” for electricity.  

These are targeted discount energy deals funded by the government for qualifying low-income consumers. There are examples of social tariffs being used overseas to reduce the harm being caused by profit-driven companies operating in essential sectors.   

She says in the UK some private telecommunications providers have voluntarily chosen to bring in subsidised social tariffs for broadband and telephone for customers on certain welfare benefits because access to the internet, like electricity, is seen as a basic human right in developed countries.  

So, if you are having to make decisions about what you spend money on right now as we head towards winter, especially those who are living in the South where the temperatures are colder, do you worry about paying the bill? Is it one of those low-level anxieties? When paying the power bill, do you take measures to ensure that you use the least amount possible of electricity to cook and heat your home?

There's nothing new in this. You know the only new thing is the fact that we now acknowledge it. People during winter ring me and tell me they go to bed at about 6pm so that they are living in one room and keeping warm in their bed rather than trying to heat their home.  

Do you consider the provision of electricity a basic human right, which in turn means that the rest of us, has an obligation to ensure that you are not in hardship when it comes to paying the bill?

If you woke up this morning and you turned on the heater because it was a bit chilly, not as chilly as it has been, but a bit chilly, good for you. Did you think about the cost? If you didn’t, lucky you.
An estimated 40,000 New Zealand households had their power cut due to unpaid bills in 2023, which is a phenomenal number of households. One in five had trouble paying their monthly power bill and this is at a time when the “big four” power companies are earning more than $7 million every day while some households struggle to heat their homes. 
These figures are according to Consumer NZ. According to their financial reports, Meridian, Contact, Genesis and Mercury had combined earnings of $2.7 billion over the last year – about $7.4m a day.  But while the consumer watchdog says the numbers are a bad look for the generation and retail power companies (retailers), the industry says it is ploughing earnings back into developments to help New Zealand transition to a carbon-zero economy.  
So, they’re not all just bloated fat cats puffing on cigars with the profits, and those aren't the profits, those are just the earnings, they are putting any profits back into transitioning to a carbon zero economy, so the wind farms and the like. 
Consumer NZ chief executive Jon Duffy said 60% of New Zealanders were concerned about the cost of energy and “the optics of huge profits at the height of a cost-of-living crisis aren’t great.” It’s the same problem with the banks, they’re making profits while people are struggling to pay the rent and to pay the mortgage. 
The coalition government, mindful of this. has continued the Winter Energy Payment introduced by the Labour Government to help with the cost of heating homes during winter but Auckland law professor Jodi Gardiner says that doesn't cover nearly enough households who are around the edges of poverty. 
If you’re not getting the Winter Energy payment, it’s because you don’t qualify. It arrives in your bank account automatically from the first of May through to the end of September, and if you’re entitled to it, you’ll be receiving it. Jodie Gardner says not nearly enough families are being taken into account for that Winter energy payment, and besides, it doesn’t go far enough. 
Many New Zealand houses, particularly social housing, were built during the era of cheaper electricity and were reliant for warmth on electric heating rather than insulation. Now, that’s changed with the Healthy Homes legislation being passed, but again, Kainga Ora and the statehouse providers were given longer to ensure their homes meet Healthy Home standards than private landlords. So, there are still people living in poorly insulated homes, drafty homes, who are reliant on electricity for their warmth and their cooking, and for everything else. 
It is estimated that now 25% of these occupants nationwide and more than 40% in the South suffer energy poverty, contributing to avoidable hospitalisation. So, you have a choice if you’re on limited income, either a benefit, or the super, or wages that cannot be raised, you either pay the power bill or you buy food, or you know, you have to make those sorts of crunch decisions. 
Jodie Gardner says a return to state ownership of electricity isn't realistic right here right now, she argues a simpler – and more appropriately targeted – approach is to implement “social tariffs” for electricity.   
These are targeted discount energy deals funded by the government for qualifying low-income consumers. There are examples of social tariffs being used overseas to reduce the harm being caused by profit-driven companies operating in essential sectors.    
She says in the UK some private telecommunications providers have voluntarily chosen to bring in subsidised social tariffs for broadband and telephone for customers on certain welfare benefits because access to the internet, like electricity, is seen as a basic human right in developed countries.   
So, if you are having to make decisions about what you spend money on right now as we head towards winter, especially those who are living in the South where the temperatures are colder, do you worry about paying the bill? Is it one of those low-level anxieties? When paying the power bill, do you take measures to ensure that you use the least amount possible of electricity to cook and heat your home? 
There's nothing new in this. You know the only new thing is the fact that we now acknowledge it. People during winter ring me and tell me they go to bed at about 6pm so that they are living in one room and keeping warm in their bed rather than trying to heat their home.   
Do you consider the provision of electricity a basic human right, which in turn means that the rest of us, has an obligation to ensure that you are not in hardship when it comes to paying the bill?

Liam Dann: NZ Herald Business Editor on the rising inflation rates

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