National and Labour are offering quite different solutions to persistently high inflation. 

Headline inflation's eased back to 3.7%, but some economists say it could reach as high as 4.7% by the end of the year. 

Labour's Barbara Edmonds says freezing the fuel tax would address the single biggest factor – surging fuel prices.  

But National's Nicola Willis told Mike Hosking National would address the other two major factors – rates and electricity. 

She says they will push ahead with rates caps and continue consenting new energy projects. 

LISTEN ABOVE 

National and Labour are offering quite different solutions to persistently high inflation.&nbsp;
Headline inflation's eased back to 3.7%, but some economists say it could reach as high as 4.7% by the end of the year.&nbsp;
Labour's Barbara Edmonds says freezing the fuel tax would address the single biggest factor &ndash; surging fuel prices. &nbsp;
But National's Nicola Willis told Mike Hosking National would address the other two major factors &ndash; rates and electricity.&nbsp;
She says they will push ahead with rates caps and continue consenting new energy projects.&nbsp;
LISTEN ABOVE&nbsp;

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Looking for actionable business insights all in one place? 
We're here to help you find a way with a curation of the &lsquo;best bits&rsquo; from top business podcasts. 
Save time searching; subscribe to the SME Stream where you can listen to relevant, timely, business-related content today.&nbsp;
&nbsp;

The SME Stream

Nicola Willis: Finance Minister and National's Finance Spokesperson on inflation easing to 3.7% in September quarter, plans to deal with it

As business owners, you know how hard it is keeping up with your business, let alone the news. Join Wilhelmina O'Keeffe each week as she gives you a rundown of the biggest stories that could impact your business, so you can make informed decisions with expert advice. 


This week, Annual inflation dips, but not for long. The India Free Trade deal comes into effect so which industries stand to benefit the most? And what’s weighing on the minds of some of our CEOs? 

As business owners, you know how hard it is keeping up with your business, let alone the news. Join Wilhelmina O'Keeffe each week as she gives you a rundown of the biggest stories that could impact your business, so you can make informed decisions with expert advice.&nbsp;
 This week,&nbsp;Annual inflation dips, but not for long. The India Free Trade deal comes into effect so which industries stand to benefit the most? And what&rsquo;s weighing on the minds of some of our CEOs?

The SME Stream Weekly Wrap - 23rd October

Inflation is still much higher than it should be, largely because of high global oil prices. 

Stats NZ data shows the rate's now on 3.7%, down from 4.1% three months ago. 

Domestic non-tradeable inflation —for things like housing, electricity, and healthcare— has been trending down. 

Internationally-driven tradeable inflation —for things we import and export— has dipped, after trending up. 

But NZ Herald Business Editor at Large Liam Dann told Kerre Woodham economists are forecasting anywhere up to 4.7% inflation for the December quarter, which is pretty ugly. 

He says even if the Reserve Bank were to look through the impact of oil prices, the Consumer Price Index would still rise around 3.2%, which they can't ignore.  

Dann says it's one of the reasons economists expect them to hike interest rates. 

LISTEN ABOVE 

Inflation is still much higher than it should be, largely because of high global oil prices.&nbsp;
Stats NZ data shows the rate's now on 3.7%, down from 4.1% three months ago.&nbsp;
Domestic non-tradeable inflation &mdash;for things like housing, electricity, and healthcare&mdash; has been trending down.&nbsp;
Internationally-driven tradeable inflation &mdash;for things we import and export&mdash; has dipped, after trending up.&nbsp;
But NZ Herald Business Editor at Large Liam Dann told Kerre Woodham economists are forecasting anywhere up to 4.7% inflation for the December quarter, which is pretty ugly.&nbsp;
He says even if the Reserve Bank were to look through the impact of oil prices, the Consumer Price Index would still rise around 3.2%, which they can't ignore. &nbsp;
Dann says it's one of the reasons economists expect them to hike interest rates.&nbsp;
LISTEN ABOVE&nbsp;

Liam Dann: NZ Herald Business Editor at Large on the inflation rate easing to 3.7% in the September quarter

We may be at a turning point when it comes to property investment. 

Cotality data shows residential property is worth $1.66 trillion and still accounts for more than 50% of all household assets.  

But it also shows property sales and values are largely subdued.  

Chief Property Economist Kelvin Davidson told Kerre Woodham over the last couple of decades, strong capital gains and low interest rates were a big driver for the housing market. 

He says mortgage costs went down and selling provided capital gains as well, but this potentially won't last into the future. 

Davidson says property investment will probably need to be done a little bit differently, focusing on active management and cash flow rather than relying on capital gains.  

LISTEN ABOVE 

We may be at a turning point when it comes to property investment.&nbsp;
Cotality data shows residential property is worth $1.66 trillion and still accounts for more than 50% of all household assets. &nbsp;
But it also shows property sales and values are largely subdued. &nbsp;
Chief Property Economist Kelvin Davidson told Kerre Woodham over the last couple of decades, strong capital gains and low interest rates were a big driver for the housing market.&nbsp;
He says mortgage costs went down and selling provided capital gains as well, but this potentially won't last into the future.&nbsp;
Davidson says property investment will probably need to be done a little bit differently, focusing on active management and cash flow rather than relying on capital gains. &nbsp;
LISTEN ABOVE&nbsp;

Nicola Willis: Finance Minister and National's Finance Spokesperson on inflation easing to 3.7% in September quarter, plans to deal with it

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