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Analysts at ANZ point out that for the NZ economy, the minimum wage went up $1.20 on 1 April to $17.70 per hour, and is now sitting at almost 71% of the median wage.
Key Quotes
“More rises are on the way; the Government intends to keep lifting the minimum wage to $20 by April 2021.”
“All up, we expect higher minimum wages to provide a small temporary boost to real wage growth, but higher CPI inflation than otherwise will provide a partial offset. Lower-than-otherwise hours worked will also partially offset the boost to household incomes.”
“Speaking of inflation, this week brings the Q1 CPI release. Annual headline inflation is expected to tick down to 1.7% owing to softer tradable inflation. Non-tradable inflation is expected to tick up a touch, in line with RBNZ expectations.”
