Fastest in a generation electricity price rises continue hurt for working people

Inflation has surged above 4 percent again, with the latest Consumer Price Index (CPI) showing prices rising 4.1 percent annually, says Acting President of the New Zealand Council of Trade Unions Te Kauae Kaimahi Rachel Mackintosh.

“The cost of living is climbing, and wages simply aren’t keeping up. With CPI at 4.1 percent, the majority of working people are taking a real-terms pay cut. The minimum wage has now fallen behind the cost of living for three years running. For too many New Zealanders, just getting by is getting harder and harder,” says Mackintosh.

“Oil is the biggest contributor to this increase – petrol is up 27.5 percent annually and diesel a staggering 71 percent. However, electricity prices are also up 12 percent annually – and in the last nine months electricity prices increased at the fastest rate since 1989. With the price of oil also surging, now is the time for the Government to be making more investment into more renewables.

“But the pressure is everywhere: local authority rates are up 8.8 percent, and 80 percent of all items in the CPI basket rose. Just getting the basics is a growing struggle for Kiwi families. Fruit is up 6 percent, meat is up 7.5 percent, bread is up 4.7 percent, children’s footwear is up 5.3 percent. Working New Zealanders are struggling to buy shoes for their children while the rich are getting richer – inflation is now higher in New Zealand than in Australia, the UK, the USA, and across the European Union.

“And where is the Government?” asks Mackintosh. “Instead of helping struggling families, it is cutting benefits, increasing Kāinga Ora rents, and driving up costs. With oil prices rising again, inflation is likely to climb further. Working people desperately need a government that puts money in their pockets. We must start making different economic choices.”