Beneficiaries, superannuitants and people on the lowest incomes continue to bear the brunt of higher inflation, according to the latest data from Statistics NZ, says Labour Finance spokesperson Grant Robertson.
“Since National came to office (December 2008) inflation for those on the lowest 20 per cent of incomes has increased by 17 per cent. But for those with the highest 20 per cent of incomes, it has increased by only 10 per cent.
“The cost of core inflation items like food, fuel and rates are all soaking up an increasing chunk of the incomes of the lowest paid people. These are costs that Kiwis can’t avoid – and they are rising faster than other costs in the economy.
“High housing costs, rising rents are all eclipsing the mediocre wage increases for New Zealanders. Yesterday the latest wages data showed that 67 per cent of Kiwis got a pay rise of less than inflation, which means they effectively are working harder for less.
“Rather than address these problems National doesn’t have a plan for the economy, to help boost our notoriously low productivity, nor to help Kiwi families.
“Only a Labour-led Government will help address the growing cost of living crisis in New Zealand for low income Kiwis and we’ll deliver the shared prosperity that all New Zealanders deserve,” says Grant Robertson.