NZ inflation rate compares well with OECD countries

Press, 29 May 1984, Page 18

NZ inflation rate compares well with OECD countries

By

ADRIAN BROKKING

New Zealand does not

have the highest rate of inflation of all OECD countries, as asserted on page 4 of the “Economic Policy” statement by the New Zealand Party which was released at the week-end. As the table, the latest from the Paris office of the OECD (Organisation for Economic Co-operation and Development) shows, of the 24 member countries 20 had a higher rate of inflation than New Zealand, and only three a lower rate — Japan, West Germany, and Switzerland. In the 1983 calendar year 14 countries had a higher

inflation rate, and nine did better than New Zealand. Even in the decade 1971-80, when we suffered from rampant inflation, eight countries had a still higher rate. In the decade 1961-70 we were also in the bottom half of the list, with 10 countries having a lower, and 13 a higher, rate. Consumer prices in OECD countries rose 0.4 per cent in March 1984 compared with 0.5 per cent in February and 0.6 per cent in January. The 12-month rate of increase remained at 5.8 per cent while the 6-month rate fell to 2.6 per cent. The month-to-month de-

velopment in the over-all index reflected a slackening in all components of the index. Retail food prices eased somewhat, particularly in North America where prices stabilised after two months of abnormally sharp seasonal increases. Retail energy prices rose less or actually fell during March in a number of countries. The underlying movement, as measured by nonfood non-energy prices, continued at a low rate similar to that experienced in recent months. Inter-country differences in inflation rates have narrowed slightly in recent months, the OECD said.

At average annual rate At actual rate Average 1981 1982 1983 12 months to March 6 months to March 1961-70 1971-80 United States 2.8 7.8 10.4 6.1 3.2 4.7 1.8 Japan 5.8 9.0 4.9 2.7 1.9 2.5 1.2 Germany 2.7 5.1 5.9 5.3 3.0 3.2 1.3 France 4.0 9.7 13.4 11.8 9.6 8.6 3.6 United Kingdom 4.1 13.7 11.9 8.6 4.6 5.2 1.6 Italy 3.9 13.8 17.8 16.6 14.6 11.9 6.3 Canada 2.7 8.0 12.5 10.8 5.9 4.7 2.3 TOTAL OF ABOVE COUNTRIES 3.2 8.5 10.0 7.0 4.5 5.0 2.1 Austria 3.6 6.3 6.8 5.4 3.3 5.8 4.4 Belgium 3.0 7.4 7.6 8.7 7.7 7.1 2.8 Denmark 5.9 9.8 11.7 10.1 6.9 7.1 3.3 Finland 5.0 11.2 12.0 9.6 8.3 8.1 3.1 Greece 2.1 14.3 24.5 21.0 20.5 16.9 10.0 Iceland 11.9 32.8 51.6 49.1 86.7 64.0 9.4 Ireland 4.8 13.7 20.4 17.1 10.5 10.1 4.2 Luxemburg 2.6 6.6 8.1 9.4 8.7 7.5 3.0 Netherlands 4.0 7.3 6.7 6.0 2.8 3.9 2.0 Norway 4.5 8.4 13.6 11.3 8.4 6.7 3.8 Portugal 3.9 18.6 20.0 22.4 25.5 30.0 15.8 Spain 6.0 15.3 14.6 14.4 12.1 12.1 6.7 Sweden 4.0 9.2 12.1 8.6 8.9 8.9 4.7 Switzerland 3.3 5.0 6.5 5.6 3.0 3.3 2.3 Turkey 5.9 33.4 37.6 32.7 28.8 37.1 19.8 Australia 2.5 10.4 9.7 11.2 10.1 8.6 4.2 New Zealand 3.8 12.5 15.4 16.1 7.4 3.5 1.7 TOTAL OECD 3.3 9.0 10.5 7.8 5.3 5.8 2.6 OECD EUROPE 3.8 10.4 12.1 10.5 8.2 8.1 3.9 EEC (b) 3.6 9.5 11.1 9.8 7.3 6.9 3.1