Business Update – 1 June 2022
Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.
Reserve Bank intends to remain flexible
RBNZ’s chief economist says that the body intends to adapt with the rapidly changing economic conditions, planning to reassess its interest rate approach regularly.
Woolworths and Foodstuffs both commit to meeting government expectations
Both of New Zealand’s major supermarket chains committed to meeting or exceeding the requirements outlined by the government this week, in an attempt to keep grocery prices fair.
Prime Minister visits the US
Prime Minister Jacinda Ardern is currently visiting the United States, with tourism, trade, and keeping American interest alive in the Pacific front of mind.
Retail spending drops along with consumer confidence
As real wages, house prices, and equities fall, the bleak outlook held by many Kiwis is reflected in a retail spending drop. The consumer confidence index slipped in April to sit just above its record low.
Interest rates rise further
The Reserve Bank raised interest rates to a 6-year high of 2 percent, and warned that further rises are coming in the battle against inflation.
Petrol prices continue to climb
The cost of importing fuel to New Zealand hit another record high last week, landing at $1.59 per litre. This translated to $3.15 for consumers at the pumps.
Cost of Living Payment coming in August
The government announced a payment to help ease the cost of living, totaling $350 split into 3 payments starting in August. All those eligible will automatically receive the payment and there is no application necessary. Details can be found here.
Construction industry likely entering bust cycle
The rising costs of labour and supplies combined with falling house prices are making the cost of building untenable.
Tax experts stress the importance of New Zealand’s billionaires paying more
The number of billionaires in New Zealand has risen to 14, and tax consultants say we need to reevaluate how our wealthiest are taxed before it’s too late in order to address income inequality.
New Zealand Medical Association liquidates
Members voted to liquidate the 136-year-old organization, citing declining numbers and rising costs exacerbated by the Covid-19 pandemic.
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