Negligible inflation

The latest Consumer Price Index shows inflation at a negligible 0.2% for both the past quarter and the past year (to September).

This remains outside the Reserve Bank target range of 1-3%, as it has been for the past two years.

With mortgage interest rates at record lows many people will be benefiting from price stability, except for those wanting to enter the inflated housing market or having their rents pushed up.

Some see problems with ongoing low inflation rates but it’s a lot better than the days of rampant inflation.

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8 Comments

  1. Kitty Catkin

     /  18th October 2016

    I wish that I had kept-or could remember-the old bank statements from when our mortgage was new. When I found them a few years ago, I couldn’t believe the interest rate.

    Of course, it went both ways-interest earned was enormous as well. Now the interest on my term investment is 3.6%.

    Reply
    • I’ve paid up to 18.5% for a mortgage, in the eighties – the good old days that anti-neoliberals want to return to.

      Reply
      • Seriously Pete, you think the current situation is the result of a “free market”? The eighties weren’t the “good old days”, they were the beginning of the bad new days …

        Neoliberal “evolutionaries” like myself don’t want a return to those days at all … I just want “going forward” to mean going forward – as in “evolving” – rather than devolving …

        Reply
    • Alan Wilkinson

       /  18th October 2016

      You would do better with some shares, Kitty. You should talk to a good adviser.

      Reply
  2. UK inflation is five times higher than in New Zealand:

    UK inflation rate rose to 1.0% in September, up from 0.6% in August, according to official figures – breaking news, BBC

    It’s still quite low.

    Reply
  3. alloytoo

     /  19th October 2016

    Low or negative inflation is bad in a low investment / contracting economy. We do not suffer from those ails. As it stands we should just enjoy the inflation sweet spot.

    Reply

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