New wage data is more grim news for Kiwi families grappling with the cost of living crisis, National’s Finance Spokesperson Nicola Willis says.

Wage inflation, measured by the labour cost index (LCI) was 3.4 per cent in the year ended June 2022, meaning wage growth is trailing well behind price inflation which was 7.3 per cent over the same period.

“This means prices have now risen faster than wages for the past eight quarters in a row, meaning Kiwis have gone backwards financially for two years, and counting,” Ms Willis says.

“Today’s data release shows a very extended period of Kiwis’ wages failing to keep up with rocketing prices. It confirms the grim reality: that rapidly rising prices are pummelling hard-working Kiwis as their wages lag behind prices.

“Labour's addiction to spending and economic mismanagement are two of the key drivers of inflation. Families are being let down by a Government whose only plan for dealing with the cost of living crisis is a temporary Band Aid payment.

“It turns out Labour can’t even give other people’s money away effectively. The Band Aid payment has been a debacle with around 800,000 eligible Kiwis missing out while expats and even foreign nationals living overseas have received it.

“Associate Finance Minister Kiri Allan admitted today the policy was made up ‘essentially overnight’.

“A National Government would help wages grow faster than prices by driving productive growth in the economy – unblocking bottlenecks, reducing costs on business, bringing discipline to Government spending, prudent tax reduction and focusing the Reserve Bank on an anti-inflation mandate.”

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