Wage Growth Fails to Keep Pace with Inflation in New Zealand

New Zealand's wage growth is struggling to keep pace with inflation, according to recent data from Stats NZ.

The labour cost index shows salary and wage rates rose by only 2 percent over the year to June, while inflation reached 4.1 percent.

Kiwibank economist Alexandra Turcu said 'the cost of things has increased twice as much as the wages that the average Kiwi is getting.'

While some industries saw larger increases in wage growth, such as wood and paper products manufacturing at 3 percent, others lagged behind.