  Second, oilseeds and products (weight in WPI: 6.8 per cent): This relatively small commodity group has often induced sudden surge in headline WPI as there is a structural shortage and nearly a third of domestic consumption of edible oils is met from imports.
Such adjustments are likely to be prompted by a lower exchange rate and/or higher interest rates. The transition to a lower current account deficit effectively means reducing New Zealand's reliance on foreign savings and increasing the saving we do ourselves. For the household sector, which has been relying heavily on debt in order to finance spending, this adjustment process may not be painless.