August 2021
The latest figures recently released show annual inflation at 3.3% in June, with 10 out of the 11 measures used to calculate the figure showing an increase, all of which adds to the financial challenges already facing businesses and households alike.
The cost of housing and petrol are the main reasons that the increase is well above what was predicted, with the price of food, particularly vegetables, also showing a significant increase.
For many people the timing of these increases couldn’t be worse as they look to rebuild their financial position either at home, in their business, or both. Over-stretched budgets will come under increasing pressure as these additional costs are felt, leaving many people with important decisions to make as they prioritise where to spend their income.
Adding to the problem, Auckland Council recently announced the adoption of their 10-year (long-term plan) Budget, also known as the Recovery Budget, which they say has focused on investing in vital infrastructure and continuing to provide the essential services that make Auckland a great place to live, work and play.
This investment has been made possible through several actions which includes raising general rates by 5% in year one of the 10-year Budget and 3.5% in subsequent years. When you add these costs to the large increases in water rates already announced, I would suggest that the capacity of some budgets simply won’t be enough.
In closing, I would once again thank you for continuing to support your local businesses.
Kevin O’Leary
General Manager, Business North Harbour
SOURCE: Networker Magazine
