Dawn Chorus: Stagflation fear growing

Supply chain disruptions and gas shortages extend global inflation surge as Chinese factories slow unexpectedly; Stagflation fears rising; Long Covid tail complicating RBNZ rate hike decision

TLDR & TLDL: PM Jacinda Ardern has indicated an extension of Auckland’s boundary controls for at least another week, which will force the cancellation of many school holiday travel plans scheduled to start next Friday. It’s another blow for regional tourism firms in desperate need of revenues from Aucklanders, and is likely to extend the economic hit from this record-long delta lockdown.

The PM is keen to reassure New Zealanders that the outbreak is under “broad control” but it increasingly appears the numbers showing up in testing and announced daily at 1pm are just the tip of a Covid iceberg. Photo: Lynn Grieveson/TheKaka

News overnight of two new ‘walk-ins’ of Covid cases to Auckland hospital are also unnerving and suggest the outbreak is far from under “broad control,” as stated by Ardern yesterday. It is unlikely to be under “broad control” by either next Monday when Cabinet makes its decision on moving Auckland from level three to level two (but with level four boundaries), and n…

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