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It might be tempting to blame inflation on profits, but the reality is still about high demand and short supply

  • Written by: Michael P. Cameron, Professor of Economics, University of Waikato
It might be tempting to blame inflation on profits, but the reality is still about high demand and short supplyGetty Images

Despite the latest inflation figures for New Zealand coming in slightly lower than expected by many economists, the rate remains stubbornly high. At 6.7% for the year to March 2023, the inflation rate is more than double the Reserve Bank’s target range of 1-3%.

But not everyone seems to be feeling the pain of increasing prices.

Maj...

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