Rising petrol costs hit low earners while falling interest rates help high earners
The cost of living has risen faster than inflation for superannuitants and low-income earners, according to new data from Stats NZ. Falling interest rates, meanwhile, have relatively benefited higher-income households.
New data published by Stats NZ shows that the cost of living for superannuitants and low-income households has risen faster than the overall inflation rate. Rising petrol prices are cited as a leading driver of that gap.
By contrast, falling interest rates have relatively benefited higher-income households, which typically carry more debt and hold larger investment returns. Economists warn the divergence could deepen inequality between income groups.
The data has reignited debate over the government's cost-of-living policies. Experts say targeted support measures for low-income households could come to the fore.
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