Analysts at ANZ indicate that the minimum wage for the New Zealand economy rose by $ 1.20 on April 1 to $ 17.70 an hour, now around 71% of the average wage.
There is more hike in the road; The government intends to continue raising the minimum wage to $ 20 by April 2021. ”
"In general, we expect the rise in the minimum wage to provide a slight temporary boost to real wage growth, but higher CPI inflation than otherwise will provide partial compensation. Also, fewer hours of work will partially offset increased household incomes."
Speaking of inflation, this week will come with the release of the first quarter CPI. The main annual inflation rate is expected to drop to 1.7% due to weak tradable inflation. The non-tradable inflation rate is expected to rise slightly, in line with RBNZ expectations.
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