Black Monday

[Rawz]

Inflation will only die with job losses. And there were more this morning with Oranga Tamariki cutting 400 jobs and just announced now 500 jobs on the line at the ministry of education.

My local thai restaurant closed last month too.

Its tough out there imo

[bull....]

New Zealand’s consumers price index increased 4 percent in the 12 months to the March 2024 quarter, according to figures released by Stats NZ today.
The 4 per cent increase follows a 4.7 per cent increase in the 12 months to the December 2023 quarter.

core is sticky , need to crush the economy more. dont know how they will stop rents going up without more supply and another round of double digit rates increases

[kiora]

The sharks are back in today?

[causecelebre]

core is sticky , need to crush the economy more. dont know how they will stop rents going up without more supply and another round of double digit rates increases

Exactly, rent, rates, insurance and construction costs. Landlords are not going to drop the rent even given interest deductibility. Rates (and water, etc) are going up to pay for the debt and road cones. Building materials are sticky, thought hopefully (as we are pricing a renovation) the builders margins will get squeezed due to competition for work.

[alokdhir]

Every time it feels its different but its always the same ...Inflation will come down so will rates ...how it happens ...like it happened before ...cycle after cycle ...thats why its called cyclical ....

[Daytr]

Exactly, rent, rates, insurance and construction costs. Landlords are not going to drop the rent even given interest deductibility. Rates (and water, etc) are going up to pay for the debt and road cones. Building materials are sticky, thought hopefully (as we are pricing a renovation) the builders margins will get squeezed due to competition for work.

From what I am seeing is that the cost of building is / has come down substantially and I wouldn't be surprised to see that continue as work dries up. That combined with Government efforts to strip away red tape & allowing a lot more products to be accepted in NZ.

Speaking to someone today who is a commercial landlord with multiple properties and they have offered their tenants a reduction in lease costs, recognizing the difficulties business owners are facing. Not sure if that is wide spread, but I thought it was interesting.

[alokdhir]

Every day NZX bluechips open weak and close strong ...I hope traders like Bull taking advantage of fickle minded retail investors of NZ who follow. the overseas sentiment by selling at open only to see blue chips improving mostly by close

[bull....]

Every day NZX bluechips open weak and close strong ...I hope traders like Bull taking advantage of fickle minded retail investors of NZ who follow. the overseas sentiment by selling at open only to see blue chips improving mostly by close

been like that for quite a while. ebo , fph but volumes are so tiny on open not worth trading

[Valuegrowth]

Inflation is not going to end easily. I don’t see falling prices for Insurance premium, rents, and rates. They have gone up in huge amount.

https://nz.news.yahoo.com/why-interest-rate-cut-may-075100884.html


"The headline Consumer Prices Index (CPI) measure fell from 3.4% in February to 3.2% and the 'core' measure, which strips out volatile elements such as energy, food, alcohol and tobacco, eased from 4.5% in February to 4.2%.

However, both figures are higher than expected, with the market having looked for CPI of 3.1% in March and core inflation of 4.2%. To that extent, the figures are a disappointment.

That caveat is important because there is still inflation in the system.

The March CPI figure in the United States came in at 3.5% - up from 3.2% in February and the third consecutive month that inflation had come in ahead of expectations. The American experience is a reminder, should one be needed, that inflation does not come down in a straight line.

The Bank's most recent Financial Stability Report, published just before Christmas, noted that some five million UK households who locked into their mortgage deals before it began raising the cost of borrowing would feel the impact of higher mortgage costs between then and the start of 2026."