Latest news with #housingcosts
RNZ News
a day ago
- Business
- RNZ News
Inflation hits 12-month high of 2.7%
Key factors contributing to the inflation increase include surging food, power and housing costs. Photo: RNZ Recent figures show inflation has risen to a 12-month high, pushing the annual rate to 2.7 percent. Stats NZ data shows the consumer price index rose 0.5 percent in the June quarter, taking the annual rate to 2.7 percent. Key factors contributing to the inflation increase include surging food , power and housing costs, offset by cheaper fuel. The spike is not expected to halt at least one more Reserve Bank (RBNZ) rate cut. Consumer prices for the three months ended June were expected to have risen 0.6 percent . Economists believe inflation will edge above the Reserve Bank's 1.3 percent target band by September, but then ease. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
2 days ago
- Business
- RNZ News
Inflation predicted to hit 12-month high for June quarter
High food, power and housing coasts are offset by cheaper fuel. Photo: RNZ Inflation is expected to hit a 12-month high, as surging food prices and power costs put the squeeze on household budgets. Consumer prices for the three months ended June are expected to have risen 0.6 percent, pushing the annual rate to 2.8 percent from 2.5 percent in March. ANZ senior economist Miles Workman said there would be familiar domestic drivers of the latest numbers. "The main drivers of quarterly inflation are expected to come from the food and housing-related groups - accelerating electricity inflation, but slowing rents and construction." High export prices for meat and dairy products have driven local food prices, and thus stoked inflation, but at the same time, they are delivering strong export returns that have supported the economy. ASB senior economist Mark Smith said the spike in inflation was expected to push the annual rate above three percent in the September quarter, but should prove to be temporary. "We expect the period of three percent-plus inflation to be short-lived. Forthcoming inflation expectations surveys will be critical for ascertaining whether team transitory or team persistence will win the inflation tug-o-war. "Our core judgement is that the deteriorating global outlook and the large margin of spare capacity will dampen the medium-term outlook for inflation." Workman said the higher inflation numbers would be uncomfortable reading for the Reserve Bank (RBNZ), which would have to balance between controlling inflation and helping the economy. "The RBNZ will need to balance any upside surprise in the CPI against the signal from the high-frequency data, which is currently pointing to a stalling recovery and therefore downside risks to the medium-term inflation outlook." In its most recent monetary review, the RBNZ acknowledged the speed-up in inflation, but also gave a strong hint of a further rate cut at the end of August. "If medium-term inflation pressures continue to ease as projected, the committee expects to lower the official cash rate further ," the RBNZ statement said. Kiwibank economists said the issue for the RBNZ and interest rate policy was underlying inflation trends. "Encouragingly, core inflation has been trending south since hitting the 6.7 percent peak at the end of 2022. In the year to March 2025, core inflation fell to 2.6 percent." They said the economy needed lower rates and they expected another 25 basis-point cut in August. At this stage, Workman picked the cuts in August, November and early next year would take the cash rate to a low of 2.5 percent. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Malay Mail
3 days ago
- Business
- Malay Mail
Johor drafting measures to tackle rising food, transport and housing costs
KULAI, July 18 — The Johor government is formulating mitigation measures to address rising food, transportation and housing costs, particularly in Johor Bahru. State Investment, Trade, Consumer Affairs and Human Resources Committee chairman Lee Ting Han said a discussion on the matter was held today with the relevant state executive councillors. The meeting also touched on efforts to improve public transportation services and expand the Muafakat Johor bus network, while seeking ways to ease the people's financial burden. 'We take note of public concerns raised during on-the-ground engagement and through social media. The people of Johor are worried about what's to come, given the state's rapid economic growth. 'So, how do we ensure that people can benefit from this growth, so that everyone, especially the younger generation, chooses to remain in Johor and has access to promising career prospects? These are some of the challenges we must address,' he told a press conference after attending the Sirim Silaturasa 2025 event at the SIRIM Johor office here today. He was commenting on a recent statement by Menteri Besar Datuk Onn Hafiz Ghazi, who said that Johor Bahru's cost of living had surpassed that of several other major Malaysian cities. Lee said that supply and demand are among the factors contributing to the rising costs, in addition to the state's rapid economic growth. 'On housing, we've received feedback that rental rates are quite high. As announced by the Menteri Besar, we will accelerate the construction of affordable housing. 'Initially, we aimed to build 30,000 units by 2030, but the Menteri Besar has raised the target to 100,000 units by that time. We are now making plans to meet this target,' he said. Lee said Onn Hafiz is expected to announce initiatives addressing these concerns in the upcoming Johor Budget 2026, scheduled in November. — Bernama
The Independent
5 days ago
- Politics
- The Independent
Mexico City's plan to tackle gentrification after angry protests against overtourism
Mexico City authorities have unveiled a preliminary plan to combat gentrification, following a week of intense protests over soaring housing costs. The rising prices are widely attributed to a surge in mass tourism and the influx of "digital nomads" – foreigners temporarily residing in the capital. Mayor Clara Brugada announced that the strategy includes regulations to prevent landlords from increasing rents beyond inflation. Additionally, officials plan to publish a list of "reasonable rental" proposals to guide the market. Brugada said her government will open a discussion with residents of Mexico's capital about her plan, but that the idea is to work on a bill that includes measures to promote affordable rent. The protest in early July was fueled by government failures and active promotion to attract digital nomads who work remotely often for foreign companies from Mexico City, according to experts. Hundreds of people marched in neighborhoods popular with tourists, but the demonstration turned violent when a small number of people began smashing storefronts and harassing foreigners. Mexican President Claudia Sheinbaum said that the protest was marked by xenophobia. 'The xenophobic displays seen at that protest have to be condemned. No one should be able to say 'any nationality get out of our country' even over a legitimate problem like gentrification,' Sheinbaum said back then. Many Mexicans have complained about being priced out of their neighborhoods — in part because of a move made by Sheinbaum in 2022, when she was the Mexico City mayor and signed an agreement with Airbnb and UNESCO to boost tourism and attract digital nomads despite concern over the impact short-term rentals could have. During the protest, some people marched with signs reading 'Gringo: Stop stealing our home' and 'Housing regulations now!' The Mexico City Anti-Gentrification Front, one of the organizations behind the protest, said it was 'completely against' any acts of physical violence and denied that the protests were xenophobic. Instead, the organization said the protest was a result of years of failures by the local government to address the root of the problems. 'Gentrification isn't just foreigners' fault, it's the fault of the government and these companies that prioritize the money foreigners bring,' the organization said in a statement. Meanwhile 'young people and the working class can't afford to live here.' Some anti-gentrification groups have called for a new protest this weekend.
South China Morning Post
5 days ago
- Business
- South China Morning Post
Home sweet home? More like investment sweet investment in Hong Kong
Feel strongly about these letters, or any other aspects of the news? Share your views by emailing us your Letter to the Editor at letters@ or filling in this Google form . Submissions should not exceed 400 words, and must include your full name and address, plus a phone number for verification How do we put into perspective Hong Kong's property market? On the one hand, we have parties such as Morgan Stanley projecting that 'the decline in prices is behind us' and talking as if the decline has been an issue. On the other hand, we still have one of the most expensive property markets in the world where 46 per cent of households live in government-owned or -subsidised housing. Think about this for a moment: in a city with the third highest number of dollar billionaires in the world, nearly half of households need government support for one of life's most basic essentials, shelter. Given this situation, why would we want housing costs to increase? Yet the administration's measures to boost the property sector are obviously going to make housing even less affordable while propping up the wealthy.
