Tuesday, 24 May, 2022

New Zealand inflation hits 30-year high

New Zealand inflation hits 30-year high


New Zealand's annual inflation rate soared to a three-decade high in 2021, driven by fuel price hikes and the country's red-hot property market, official data showed Thursday.

Prices rose 1.4 percent in the final quarter of 2021, pushing the annual increase for the calendar year to 5.9 percent, the highest since 1990, Statistics New Zealand (SNZ) said.

Prime Minister Jacinda Ardern said the sharp rise in the cost of living had been widely anticipated, blaming "oil prices and international tensions".

House prices skyrocketed more than 28 percent in 2021, creating a political headache for Ardern as many young families find themselves unable to pursue the dream of owning their own home.

The central bank is widely expected to hike rates again at its next meeting on February 23.