Migration's impact on inflation – it all depends

Migration's impact on inflation – it all depends
More temporary migrants have lower demand impacts i.e. they might not buy a house. (Image: Getty)
Jem Traylen
With migration flows at near-record levels, the Reserve Bank of New Zealand has been pondering its relationship with inflation.Unfortunately, according to Reserve Bank of NZ (RBNZ) chief economist Paul Conway, there are no clear rules of thumb.This contrasts with, say, the relationship between inflation and government spending, where it’s already well understood that if the latter expands, then our central bank needs to cool the inflationary jets.Exceptionally highNZ has exceptionally high migration per capita, both inward and outward, co...

More Economy

Trade data shows imports down, exports up in November
Economy

Trade data shows imports down, exports up in November

The latest trade data follow Thursday's dire GDP result.

Staff reporters 20 Dec 2024
GDP plunge may spur speculation about a 75bps cut
Economy

GDP plunge may spur speculation about a 75bps cut

The past two quarters mark the weakest six months since June 1991. 

Rebecca Howard 19 Dec 2024
Massive GDP fall: NZ in deep recession
Economy

Massive GDP fall: NZ in deep recession

New Zealand’s gross domestic product fell 1.0% in the September 2024 quarter.The massive fall came after a revised 1.1% decrease in the June 2024 quarter, according to figures released by Stats NZ on Thursday.“The structure of the New Zealand economy can change quickly, which is...

Staff reporters 19 Dec 2024