The Productivity Commission has released a new report comparing consumer prices in New Zealand with those overseas. The report, by Victoria University’s professor Norman Gemmell, confirms what most Kiwis already know – that we’re a high prices nation.
Entitled Explaining international differences in the prices of tradables and non tradables, the report follows one published in March that compared the cost of goods and services in New Zealand with other international markets. See: The prices of goods and services in New Zealand: An international comparison,
In releasing this latest paper the Commission cautions that it’s “impossible to say” whether our consumer prices are “too high”. We need to understand what’s driving prices. They might reflect New Zealand’s intrinsic production costs. On the other hand, they may also reflect problems in our markets, such as a lack of competition or access in key areas. All very confusing but, for the committed, the report can be found at: www.productivity.govt.nz
