If higher inflation does lead to higher term deposit interest rates, then perhaps that may provide a boost for retired folk's income. I think many NZ retired people do still like a high percent of their investment portfolio as bank term deposits. So even though the real value of the term deposit is being eroded by inflation just a 1 % increase in a term deposit rate will provide a large percentage increase in interest income.
That may lead to more people thinking that a move into a village may be affordable, if any surplus from the sale of house can be partially invested into term deposits earning more interest. So maybe a higher incoming tide to float that beached whale?