So inflation to 31 March 2011 is 4.5% Outside of the target band of 0-3% they are still blaming the GST increases for this high rate and yet economists expect this to rise further in the year to 5.5% ...
These figures include huge increases for petrol and cigerettes, a 4.8% increase for food, and a DECREASE in international airfares of 9.2% - which to me should not be included as its not particularly relevant to the average NZer... (unless you want to MOVE to Aussie and then its a good thing)
So questions : Hands up who got a pay rise of 4.5% or more lately? Otherwise you just got another pay decrease!
Serious question: Does anyone know how the reserve bank can control Inflation exactly to bring it back into the target band when it is so far out at the moment - how do they do it and do you think they can do it anytime soon?