Will's Word: Inflation spike we all saw coming

The latest inflation figures shouldn't come as much of a surprise to you or I.

We've all felt it every time we've filled up the car. The conflict in the Middle East sent global oil prices soaring, and we were warned weeks ago that those higher fuel costs would eventually flow through to the stats.

But while the headlines are screaming that inflation has climbed to a two-year high of 4.1 per cent, let's keep some perspective.

I know people are frustrated. Frustrated by a sluggish economy. Frustrated by high unemployment. Frustrated that the cost of living is still biting.

But I for one, don't want to be a merchant of misery. I want to stay optimistic about where New Zealand is heading.

On this point, I think Finance Minister Nicola Willis has a fair argument. A significant chunk of this inflation spike has been driven by the conflict in the Middle East, an event completely outside of our control. We can't exactly influence global oil markets can we?

Listen to Will's Word below.

That doesn't mean the Government gets a free pass here either. It's worth noting the 12 per cent annual rise in household electricity bills from these latest figures.

Couple that with an inflation rate of 4.1 per cent, alongside the Reserve Bank's decision to raise the Official Cash Rate by 25 basis points to 2.5 per cent - this isn't the sort of economic record any incumbent wants heading into an election.

It's hardly compelling evidence that everything is moving in the right direction. But nor is this an automatic victory for the opposition.

Frankly every party asking for your vote has to explain not only how they'll grow the economy, but how they'll avoid making inflation even worse.

I'm just not convinced either side of politics has the better plan to get our economy out of the sluggish recovery it is in.