The bank’s economists noted that because the figures were for an average household. Some would pay less but those with significant debt could end up paying notably more.
Alright guys, here's my game plan.
Start drinking.
Really, build that daily habit until you're spending at least $70 per week on alcohol.
More spending means more demand means more production
No, inflation happens in that gap between demand and production.
Say I'm selling 5 sandwiches and suddenly 7 people want them, now I can put up the price and sell them to the 5 who are willing/able to pay slightly more.
Edit: this is why the RBNZ typically raises the OCR to curb inflation. Mortgages etc going up makes people's spending go down and slows inflation.
Khan academy has an economics course that covers this well. It's videos are pretty poor resolution though, I'm pretty sure it was one of the original ones when Mr Khan was just making his own website with his own videos.