Each week BusinessDesk and the NZ Herald's Cooking the Books podcast tackles a different money problem. Today, it's why you might not feel richer despite rising wages, and how to change that. Hosted by Frances Cook.
Wages have just gone up by the highest percentage since March 2009.
That's according to the latest figures from Stats NZ, which show that wages went up 3% for the quarter ending March 2022. For the year to March, wages shot up 4.8%.
So far so good right? I like people getting a pay rise, I think we all should. So why aren't I happier?
Well, because in real terms we've all still gone backwards.
Inflation over that year was up 6.9%. This means that if you're the average person, your pay packet went up 4.8%, but the cost of all of your basic necessities went up 6.9%, so you've got less in your wallet than before.
And if you're one of the unlucky ones who hasn't secured a pay rise yet, well, you're really feeling the pinch.
The problem is that inflation and wages are linked as well. We're already starting to see people popping up to say that if people keep asking for a pay rise, it will push inflation even higher, and we'll all actually end up worse off.
So, is that actually true? How do you survive when life is getting more expensive by the minute, and can the little guy ever catch a break?
For the latest podcast, I spoke to Shamubeel Eaqub, economist for Sense Partners.
For the interview, listen to the podcast here: