Inflation ‘likely to be record’

Press, 13 July 1979, Page 2

Inflation ‘likely to be record’

Wellington

Inflation by the end of the year was likely to be at a record level, said the Leader of the Opposition (Mr Rowling) yesterday. Commenting on the latest consumers price index figure, he said it indicated inflation was “sharply on the rise.”

Domestic inflation was “running amuck” and international inflation was being compounded by increases in oil prices. Mr Rowling said his previous estimates of a 15 per cent inflation rate by the end of the year would turn out to be a understatement.” All the indications were

that inflation would be higher than the 1976 record of 17.6 per cent, he said. Mr Rowling emphasised that the latest 4.5 per cent price index quarterly figure did not take into account the full impact of the sales tax increases on consumer goods or of the petrol and power price rises. The increase in inflation was “bad news for everyone,” he said, predicting that New Zealand’s domestic inflation problem would be further accentuated later this year by the O.P.E.C. oil price increases. The Social Credit leader (Mr Beetham) said the index increase showed that New Zealand’s economic problems were deepening.