Rising wages and low inflation supporting Kiwis
Kiwis are benefiting from higher wage growth and low inflation under the Coalition Government.
Stats NZ data out today shows the rise in the cost of living remains low, as annual Consumers Price Index (CPI) inflation fell to 1.5% in September from 1.7% in June.
“The low inflation comes as working New Zealanders are getting more in their back pockets because wages are rising faster under the Coalition Government,” David Clark says.
The most recent numbers show average hourly earnings increasing by 4.4% - the biggest annual increase in 11 years.
“The Government’s focus on working New Zealanders has seen us raise the minimum wage, paying workers like nurses and teachers more, and supporting low and middle-income families and superannuitants through the Families Package and Winter Energy Payment.
“At the same time, interest rates are at record lows, making housing more affordable.”
The Stats NZ inflation data released today showed:
- The price of new houses rose at its lowest rate since 2012 (2.8%), down from annual increases of over 6% during the last two years of the previous Government on this measure
- Auckland rents rose 1.8% over the year, the lowest since at least 2011, while Nationwide rent growth remained below 3%
- Petrol prices fell 2.9% nationwide over the past year, and
- Annual growth in local rates fell, growth in dwelling insurance more-than-halved from a year ago and contents insurance inflation was also lower than a year ago.
“We’ve not been afraid to take action on some of the long-term cost of living challenges we inherited, like the housing crisis, petrol company margins and the broken electricity market.
“Our Government’s house building programme is the largest since the 1970s, we’ve sharpened the teeth of the Commerce Commission to take on the petrol companies, and we’re doing the hard yards to fix the insurance and electricity markets.
“All while wages are rising faster due to the stronger economy and policies that back working New Zealanders.”