On Thursday finance minister Grant Robertson laid out the fifth budget of his career – and easily his most conservative. It was a remarkable reversal for a politician who, only two years ago, was staring down the early months of a devastating pandemic, releasing billions of dollars in economic stimulus.
That stimulus was responsible for securing a record low unemployment rate, achieving a record run of economic growth and – if Robertson’s worst critics are correct – record growth in inflation. And that was the background to Thursday’s announcement. Inflation is running a little shy of 7% and forecasters warn that relief is unlikely in the short term. Petrol prices are over $3 a litre in most centres, food prices only go one way (up) and interest rate rises are certain to occur over the short to medium term, increasing the cost of servicing a mortgage.
