July 28, 2026 • 8 mins
David Frame of Craigs IP look at interest rates and fuel's influence on inflation.
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Speaker 1 (00:00):
Oh, the Muster Financial segment with Craig's Investment Partners in Gore.
This information is general in nature and it's not financial advice.
Craig's Investment Partners Limited financial advice provider disclosure statement can
be found at craigsip dot com.
Speaker 2 (00:19):
David Frame of Craig's Investment Partners has a chatting studio
once again. Good afternoon to you, sir.
Speaker 3 (00:26):
Yes, good afternoon Andy. Brilliant day out there, isn't it.
And congratulations on five years on air.
Speaker 2 (00:31):
Oh, thank you.
Speaker 3 (00:32):
It's a great milestone.
Speaker 2 (00:33):
Inflation, that's something that is going to be a concidern
in going forward, and a lot of it seems to
come down to the price of fuel in a wise.
Speaker 3 (00:41):
Yeah, fuel is the main driver for our inflation rate,
which was rising quite rapidly this year four point one
percent for the year, which is higher than the reserve
being once it's probably going to stay up, maybe for
another six or twelve months and then ideally fall back
down because in flash bad we don't like paying more
(01:01):
at the pump, the supermarket anywhere else. And it also
means people can't really plan their finances too well if
you know every bill coming in the mail is going
to be higher than the last one.
Speaker 2 (01:12):
Yeah, we're just going to see these rises continue though,
as long as we have uncertainty with the US and
a run.
Speaker 3 (01:18):
I think so. The Reserve Bank has raised the cash
rate just trying to limit our spending. But to be
quite frank, New Zealand doesn't have a lot to spend
at the moment. So I know down here in the
rural economy, things have been going okay, but the average
household is really suffering. And you know, rates, insurance, electricity,
it's all up, fuels up, so even if they crank
(01:41):
interest straights up, it's just going to hurt quite a
few people even more.
Speaker 2 (01:44):
It's kind of ironics living in Southland or being the
driving force behind the Kiwi economy at the moment, but
you still have the handbreakers there due to inflation. Yeah.
Speaker 3 (01:53):
Yeah, and the government needs to look at the nationwide pictures.
So they've got all the Townees and Wellington Aokland, the
big cities they're suffering. You know, businesses are going broke,
people are struggling to make ends meet. Inflation would hurt
even more, so they have to take the hard task
to raise interest rates to try and curb spending to
(02:15):
try and curb inflation. So it's a no win situation
for the Reserve Bank.
Speaker 2 (02:20):
So what do you do though, if you're the government
and trying to get people to move back to the CBDs,
like said Talonga for example, you see Wellington and the
ongoing issue there with roadworks, what can you actually do
to make CBDs viable again?
Speaker 3 (02:34):
So then you look back to the local councils, local
government and try and see how they can encourage people
down now it's downtown to spend their money to move
into the cities. My son's in Wellington. It's diabolical, you know.
The government's laid off a lot of people. You could
argue they needed to because it was quite fat for
a while, but the impact on housing prices, businesses has
(02:58):
been dire. It's it's sad. I go up quite a lot.
I love Wellington, but yeah it's a shell of what
it used to be.
Speaker 2 (03:06):
Yeah, fifteen dollars jokes at the bank benchure they were
the days, I tell you.
Speaker 3 (03:10):
Interest rates yes, so interest rates have sled up slightly
this year. People are worried that with the Reserve Bank
forecasting to push interest rates higher and that's wholetale interest
rates that it will flow through to mortgages. Probably not
the case. There might be the odd little rise, but
nothing like we saw three or four years ago. Everything
(03:33):
should settle back down again and maybe twelve or eighteen
months if the economic plan goes goes as it should,
and if there isn't a change of government.
Speaker 2 (03:42):
Well, it's a funny time we live in you talk
about like in a local perspective here in Gore, and
people just can't afford to pay rates now to the
point that you can get loans out from the council.
So interest rates and everything, how are you supposed to
handle that?
Speaker 3 (03:55):
If you can't handle rates, Yeah, it's very difficult. I
know my power bill last month was about hundred dollars
more than our record high we've ever had. I know
someone who got their rates bill for next year up horrendously.
I haven't actually seen mine, but I'll hold my breath.
Costs just keep on going up, so we need to
(04:15):
see a wee bit more traction in the economy, people
actually paying a little bit more for wages and things
like that. It's good to see house prices and rents
probably haven't increased too much over the last few years.
But it's tough out there, but.
Speaker 2 (04:30):
The south of the market for real estate, especially in
the cargo's thriving at the moment, which is flying in
the face of everywhere.
Speaker 3 (04:36):
Else it is, and it's doing really well, particularly for
first home buyers. We're finding that actually buying a house
versus renting is a little bit more palatable now. So
we're lucky we're sort of at the cheaper end of
the market, even if it doesn't always feel like that way.
Speaker 2 (04:53):
The war it's back on, or is it. One hundred
and seventy five ships in the Red Sea are being
attacked by Yemen's youth, the movement, and if it is,
one thing we've learned with Donald Trump being in politics
is that we're learning more about geography by the day.
Speaker 3 (05:07):
Yeah, we are. You sort of have to look on
the internet to find where these places are and even
who these groups are. We do now that the major
major implication is that there's another oil way or waterway
that can be impeded, could drive up fuel prices even more.
Luckily for that part of the world, they can go
(05:28):
through the Sewers Canal as well. But yeah, I think
fuel prices are probably going to be high for some
time to come.
Speaker 2 (05:36):
People just have to suck it up a space, yeah,
they do.
Speaker 3 (05:40):
We don't have many alternatives, do we. I mean, I
live out of town, I have to drive to town.
I could bike, but that would be painful on.
Speaker 2 (05:46):
A cold day. Individual you could handle that.
Speaker 3 (05:49):
I could, but I live upper hill, so that wouldn't
be much fun. At the end of the workday and
work clothing, Yeah, everyone can probably crump to a degree,
but then they become really uncomfortable. So yeah, we'll all
do our best, won't.
Speaker 2 (06:01):
We serious question, are we going to see a rise
in EV's and south one?
Speaker 3 (06:08):
It probably is the answer, because.
Speaker 2 (06:11):
It's a delicate balance when you live rurally. Yeah, it is.
Speaker 3 (06:15):
And I know my wife and I travel a bit.
She just got a new car recently. Wasn't an EV
We looked at them briefly. The range would cause a
bit of grief for us. I know people say you
can charge them up easily, but we're just used to
filling up at a petrol station in one or two
minutes and on your way. I think naturally people will
(06:36):
slide in that direction over time.
Speaker 2 (06:37):
There's a lot to be said about the combustion motor.
Now a lot going on at the moment regarding investment returns.
What are people seeing at the moment.
Speaker 3 (06:46):
Well, despite the state of the world, we're seeing a
lot of corporate still doing quite well, particularly the technology
companies with the whole AI boom. So we're seeing key
we save a returns portfolio returns around five to ten
percent for the year, which is quite encouraging despite the
news on the TV. The key part to that which
(07:07):
we can assist people with is being diversified, because not
one pocket is necessarily going to do well over the
next year, and particularly for those that have all their
money invested in New Zealand, they've probably missed out on
a bit of opportunity overseas. That does take a bit
of expertise and a bit of diligence to make sure
you have the right investment strategy. But we're happy to
(07:29):
chat to anyone free of charge just to see where
they've been because some people are missing out.
Speaker 2 (07:35):
It's all about taking a prude into braxiousness.
Speaker 3 (07:38):
Yes, I think it is when you're investing. I mean,
if it doesn't mean much to you, like I could
go and bet one hundred dollars on the rugby this weekend.
But yeah, if I was betting my Kei Saver, I'd
want to speak to someone with a bit of expertise.
Speaker 2 (07:51):
Would you put one hundred bucks on the Stags a
bit of targo at the moment with their injuries? No
from the horse about Hey, Craig's Investment Partners. That shining
you warm building you guys are in Where are you.
Speaker 3 (08:05):
One Erk Street which is opposite Gore New World.
Speaker 2 (08:09):
Get on your David see it's night great Thanks David
Frame of Craig's Investment Partners based right here in Gore.
You're listening to the muster up. Next we are away
to ben More, Brenton Howden. We have a catch up
Oh, the Muster Financial segment with Craig's Investment Partners in Gore.
This information is general in nature and it's not financial advice.
Craig's Investment Partners Limited financial advice provider disclosure statement can
be found at craigsip dot com.
Speaker 2 (00:19):
David Frame of Craig's Investment Partners has a chatting studio
once again. Good afternoon to you, sir.
Speaker 3 (00:26):
Yes, good afternoon Andy. Brilliant day out there, isn't it.
And congratulations on five years on air.
Speaker 2 (00:31):
Oh, thank you.
Speaker 3 (00:32):
It's a great milestone.
Speaker 2 (00:33):
Inflation, that's something that is going to be a concidern
in going forward, and a lot of it seems to
come down to the price of fuel in a wise.
Speaker 3 (00:41):
Yeah, fuel is the main driver for our inflation rate,
which was rising quite rapidly this year four point one
percent for the year, which is higher than the reserve
being once it's probably going to stay up, maybe for
another six or twelve months and then ideally fall back
down because in flash bad we don't like paying more
(01:01):
at the pump, the supermarket anywhere else. And it also
means people can't really plan their finances too well if
you know every bill coming in the mail is going
to be higher than the last one.
Speaker 2 (01:12):
Yeah, we're just going to see these rises continue though,
as long as we have uncertainty with the US and
a run.
Speaker 3 (01:18):
I think so. The Reserve Bank has raised the cash
rate just trying to limit our spending. But to be
quite frank, New Zealand doesn't have a lot to spend
at the moment. So I know down here in the
rural economy, things have been going okay, but the average
household is really suffering. And you know, rates, insurance, electricity,
it's all up, fuels up, so even if they crank
(01:41):
interest straights up, it's just going to hurt quite a
few people even more.
Speaker 2 (01:44):
It's kind of ironics living in Southland or being the
driving force behind the Kiwi economy at the moment, but
you still have the handbreakers there due to inflation. Yeah.
Speaker 3 (01:53):
Yeah, and the government needs to look at the nationwide pictures.
So they've got all the Townees and Wellington Aokland, the
big cities they're suffering. You know, businesses are going broke,
people are struggling to make ends meet. Inflation would hurt
even more, so they have to take the hard task
to raise interest rates to try and curb spending to
(02:15):
try and curb inflation. So it's a no win situation
for the Reserve Bank.
Speaker 2 (02:20):
So what do you do though, if you're the government
and trying to get people to move back to the CBDs,
like said Talonga for example, you see Wellington and the
ongoing issue there with roadworks, what can you actually do
to make CBDs viable again?
Speaker 3 (02:34):
So then you look back to the local councils, local
government and try and see how they can encourage people
down now it's downtown to spend their money to move
into the cities. My son's in Wellington. It's diabolical, you know.
The government's laid off a lot of people. You could
argue they needed to because it was quite fat for
a while, but the impact on housing prices, businesses has
(02:58):
been dire. It's it's sad. I go up quite a lot.
I love Wellington, but yeah it's a shell of what
it used to be.
Speaker 2 (03:06):
Yeah, fifteen dollars jokes at the bank benchure they were
the days, I tell you.
Speaker 3 (03:10):
Interest rates yes, so interest rates have sled up slightly
this year. People are worried that with the Reserve Bank
forecasting to push interest rates higher and that's wholetale interest
rates that it will flow through to mortgages. Probably not
the case. There might be the odd little rise, but
nothing like we saw three or four years ago. Everything
(03:33):
should settle back down again and maybe twelve or eighteen
months if the economic plan goes goes as it should,
and if there isn't a change of government.
Speaker 2 (03:42):
Well, it's a funny time we live in you talk
about like in a local perspective here in Gore, and
people just can't afford to pay rates now to the
point that you can get loans out from the council.
So interest rates and everything, how are you supposed to
handle that?
Speaker 3 (03:55):
If you can't handle rates, Yeah, it's very difficult. I
know my power bill last month was about hundred dollars
more than our record high we've ever had. I know
someone who got their rates bill for next year up horrendously.
I haven't actually seen mine, but I'll hold my breath.
Costs just keep on going up, so we need to
(04:15):
see a wee bit more traction in the economy, people
actually paying a little bit more for wages and things
like that. It's good to see house prices and rents
probably haven't increased too much over the last few years.
But it's tough out there, but.
Speaker 2 (04:30):
The south of the market for real estate, especially in
the cargo's thriving at the moment, which is flying in
the face of everywhere.
Speaker 3 (04:36):
Else it is, and it's doing really well, particularly for
first home buyers. We're finding that actually buying a house
versus renting is a little bit more palatable now. So
we're lucky we're sort of at the cheaper end of
the market, even if it doesn't always feel like that way.
Speaker 2 (04:53):
The war it's back on, or is it. One hundred
and seventy five ships in the Red Sea are being
attacked by Yemen's youth, the movement, and if it is,
one thing we've learned with Donald Trump being in politics
is that we're learning more about geography by the day.
Speaker 3 (05:07):
Yeah, we are. You sort of have to look on
the internet to find where these places are and even
who these groups are. We do now that the major
major implication is that there's another oil way or waterway
that can be impeded, could drive up fuel prices even more.
Luckily for that part of the world, they can go
(05:28):
through the Sewers Canal as well. But yeah, I think
fuel prices are probably going to be high for some
time to come.
Speaker 2 (05:36):
People just have to suck it up a space, yeah,
they do.
Speaker 3 (05:40):
We don't have many alternatives, do we. I mean, I
live out of town, I have to drive to town.
I could bike, but that would be painful on.
Speaker 2 (05:46):
A cold day. Individual you could handle that.
Speaker 3 (05:49):
I could, but I live upper hill, so that wouldn't
be much fun. At the end of the workday and
work clothing, Yeah, everyone can probably crump to a degree,
but then they become really uncomfortable. So yeah, we'll all
do our best, won't.
Speaker 2 (06:01):
We serious question, are we going to see a rise
in EV's and south one?
Speaker 3 (06:08):
It probably is the answer, because.
Speaker 2 (06:11):
It's a delicate balance when you live rurally. Yeah, it is.
Speaker 3 (06:15):
And I know my wife and I travel a bit.
She just got a new car recently. Wasn't an EV
We looked at them briefly. The range would cause a
bit of grief for us. I know people say you
can charge them up easily, but we're just used to
filling up at a petrol station in one or two
minutes and on your way. I think naturally people will
(06:36):
slide in that direction over time.
Speaker 2 (06:37):
There's a lot to be said about the combustion motor.
Now a lot going on at the moment regarding investment returns.
What are people seeing at the moment.
Speaker 3 (06:46):
Well, despite the state of the world, we're seeing a
lot of corporate still doing quite well, particularly the technology
companies with the whole AI boom. So we're seeing key
we save a returns portfolio returns around five to ten
percent for the year, which is quite encouraging despite the
news on the TV. The key part to that which
(07:07):
we can assist people with is being diversified, because not
one pocket is necessarily going to do well over the
next year, and particularly for those that have all their
money invested in New Zealand, they've probably missed out on
a bit of opportunity overseas. That does take a bit
of expertise and a bit of diligence to make sure
you have the right investment strategy. But we're happy to
(07:29):
chat to anyone free of charge just to see where
they've been because some people are missing out.
Speaker 2 (07:35):
It's all about taking a prude into braxiousness.
Speaker 3 (07:38):
Yes, I think it is when you're investing. I mean,
if it doesn't mean much to you, like I could
go and bet one hundred dollars on the rugby this weekend.
But yeah, if I was betting my Kei Saver, I'd
want to speak to someone with a bit of expertise.
Speaker 2 (07:51):
Would you put one hundred bucks on the Stags a
bit of targo at the moment with their injuries? No
from the horse about Hey, Craig's Investment Partners. That shining
you warm building you guys are in Where are you.
Speaker 3 (08:05):
One Erk Street which is opposite Gore New World.
Speaker 2 (08:09):
Get on your David see it's night great Thanks David
Frame of Craig's Investment Partners based right here in Gore.
You're listening to the muster up. Next we are away
to ben More, Brenton Howden. We have a catch up
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