The Government could be "much more aggressive" towards some big businesses as part of greater efforts to help curb soaring living costs.
That's the opinion of economic and political commentator Bernard Hickey, ahead of today's release of the latest price index figures, which are expected to show inflation has hit a 30-year high.
Hickey told Breakfast that those in lower-to-middle incomes are being hit the hardest by a rise in the cost of necessities, such as food and transport.
He says that while the Government had made some positive changes to help reduce the impact on Kiwis, such as cutting fuel taxes and giving Kiwis a bit of extra money, there is more they could be doing.
That includes having a word with businesses, such as fuel retailers, that have reported larger profits in recent years, to see whether they are increasing their costs excessively.
"I know it's only a wagging of the finger but it's amazing what happens when you get an awkward phone call from the Prime Minister or the Finance Minister," says Hickey.
"That's something the Government hasn't really done – use it's pulpit to bully a few big businesses into keeping price inflation low."
He says the Government also had a part to play in creating inflation by pumping huge amounts into business during the Covid-19 pandemic and through its acquisition of things like houses, railways, and motorways.
However, he believes laying the blame mainly at the Government's door isn't fair.
"Half of the inflation's coming from the rest of the world through those fuel prices, which we can't really do much about."
"And, of course, food. Remember, we're at record-high food prices," says Hickey.
"Because we produce a lot of our food but at international prices, we can't control them, we then have to pay the international price."
Hickey told Breakfast there is some light at the end of the tunnel, with many economists forecasting inflation is about to hit its peak.
"Fuel prices have actually dropped a bit from a month or two ago, thanks in part to the fuel price levy cut and you’re starting to see prices get very out of breath – very high and then falling back."
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