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CPI Rise Hits Farmers Hard

Latest figures released by statistics NZ show last quarter we saw the biggest rise in living costs in over 20 years.

The consumers price index rose 2.3% for the December quarter, the largest Consumer Price Index jump since 1989.

Statistics New Zealand’s CPI report shows October’s GST hike is partly to blame for the rise, which also contributed to an overall 4 percent increase for the 2010 year.

A leap in fuel prices also had a bearing on the stats, an area which hits farmers particularly hard.

Federated Farmers’ economics spokesperson Phil York says rising input costs are adding pressure to the already struggling agriculture sector.

“I think in general we looked at the CPI figures and the non tradeables are certainly way too high.

"We think that local government charges, things like electricity, should be brought under control, along with government spending in general.

Mr York says while central Government is largely ignoring the issue, he will keep doing what he can to push farming interests.

"As long as I’m doing this job I’m just going to continue nagging them, and at some stage they’re going to have to start listening.

"At the moment we’re managing to stay above water because the commodity prices are rising, but at some point they will take a down turn again.”

Federated Farmers are also concerned about the imminent Animal Identification and Emissions Trading schemes adding further costdamien-oconnor_0s on farm.

The numbers are also prompting opposition party comment - Labour’s Agricultural spokesperson Damien O’Connor says it’s indicative of poor government.

"I don’t think the government’s doing enough in most areas, it’s completely hands off and relying on the market to develop positive outcomes for New Zealanders.

"The reality of that is that we will all be far worse off over time.”

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