CPI Falls

The Consumer Price Index has fallen by 0.3% in the last quarter, so that the annual rate of inflation is now only 0.1%.  But before you use this as evidence of "no need for pay increases for staff", you need to understand that excluding petrol the CPI increased 1.0% (and petrol prices have already reversed, so this is a more accurate figure).  Also housing and household goods' prices increased 3.0% over the year, and Christchurch rental figure increases are 50% higher than average, up 1.2%.  

So when considering annual wage increases you do need to take account of the overall low level of price increases; as you should the 3% increase in minimum wage.  But be aware of the specific situation that your staff face.  

Need help managing staff?

Mike has a wealth of experience advising on every aspect of the employer-employee relationship. I can give you per-phone guidance or work along side you to make things happen.

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