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Inflation is raising prices and reducing real wages – what should be done to support NZ’s low-income households?

  • Written by: Murat Ungor, Senior Lecturer, Department of Economics, University of Otago
Inflation is raising prices and reducing real wages – what should be done to support NZ’s low-income households?Shutterstock

There is no doubt life is becoming much more expensive in New Zealand as inflation hits a three-decade high, influenced by both domestic and international factors such as increased food, energy and housing costs, pent-up demand for consumer goods, and ongoing supply-chain disruptions.

In the 12 months to December 2021, Consumer Price...

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