‘Robflation’ a silent thief in the ‘no-frills’ Budget

A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.

Opinion

Inflation, or “Robflation” as I call it, is quietly eroding New Zealand’s wealth. With a 32-year high inflation rate, our money’s value has shrunk by 7 percent in just one year. The 2023 “no-frills” Budget, which pledged to confront the cost-of-living, will only add fuel to the inflationary fire.

Food prices have soared by 12.5 percent, rents have escalated by 10 percent, and mortgage interest payments haven’t finished trending upwards.

Finance Minister Grant Robertson, perhaps more aptly known as the “Minister of Inflation”, has been unable to curb government spending.

Robertson seems to believe it’s the Reserve Bank’s job to curb this inflationary tide alone. But it isn’t. In the words of  Ruth Richardson, “Monetary policy needs mates.” Mates like good fiscal policy, or in other words, more disciplined Government spending. Unfortunately, in the current political landscape, Robertson has no mates.

Instead, he’s only got enemies, from his colleagues, clamouring for increased spending, and potential coalition partners, such as the Greens and Te Pāti Māori, advocating for even more spending and red tape in their misguided attempt to turn New Zealand into some sort of second-rate, lentil-eating ethnostate.

The cost of Robertson’s failure to control fiscal policy is borne by everyday New Zealanders, many of whom backed Labour in 2020. Yet, rather than acknowledging their part, Robertson deflects, framing inflation as a global dilemma beyond his command.

But let’s be clear: inflation is not inevitable or uncontrollable. It is equally the outcome of flawed policies and decisions — Labour’s choice to funnel billions into poorly conceived schemes that have failed to stimulate the economy or generate jobs has been a major factor.

Kiwis are paying the price for ill-disciplined government spending and policies. We deserve mates in the Beehive that tackle inflation, a massive part of the cost-of-living crisis.

Stephen Morris

Papamoa Beach