Mōrena. Long stories short; here’s my top six things to note in Aotearoa’s political economy around housing, climate and poverty on Thursday, September 5:
The Groceries Commissioner has reported the duopolistic behaviour of the Foodstuffs (Pak’n’Save & New Word) and Woolworths (formerly Countdown) chains of supermarkets is inflating prices and profits and has threatened fresh intervention to improve competition.
Meanwhile, from elsewhere our in nation of inflation, the Government used its sovereign and monopoly power to increase fees and charges, announcing it would hike border processing levies by 65% on top of its near-tripling of a tax on tourists. That’s despite advice both would reduce export revenues, and despite the Government’s much-repeated pledge to double export revenues within a decade.
In solutions news, Genesis Energy has announced a trial for 10,000 customers whereby their water heater is controlled remotely to only use cheap power at night to reduce bills.
In Quote of the Day, our ambassador in Seoul informs a South Korean official by text New Zealand is cancelling its ferry contract midway through their building, 26 minutes before it is announced publicly by PM Christpher Luxon.
Our Chart of the day, inflation was highest in the last three years in industries with the most concentrated market share and least competition, including insurance and supermarkets.
Our Climate graphic of the day shows ocean heat in the Gulf of Mexico hitting fresh record-high levels yesterday, being 126% of previous averages.
(There is more detail, analysis and links to documents below the paywall fold and in the podcast above for paying subscribers.)
The Top Six on Thursday, September 5
1. Supermarkets making $372m more profit than normal
Commissioner reports margins rose even more from 2019 to 2023
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