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Economist Brad Olsen on Rocketing Inflation: 'Every dollar you have is worth less'

Publish Date: Tue, 19 Oct 2021, 12:27PM

The cost of living has risen.

The Consumer Price Index rose 2.2 percent in the September quarter - bringing annual inflation to 4.9 percent.

Excluding quarters impacted by GST increases - the September quarter movement was the highest since the quarter to June 1987.

Vegetable prices rose 19 per cent, making it the second largest upwards contributor to inflation. This was influenced by higher prices for tomatoes, lettuce and broccoli.

Petrol prices rose 6.5 per cent in the quarter and 22 per cent for the year.

The inflation jump means if you have not had a pay rise in the last year then it's costing you to stand still.

Brad Olsen is a Principal Economist and Director at Infometrics.

He gave Wellington Mornings host Nick Mills the rundown on what this means for New Zealander's pockets and say the majority of workers have not had a pay rise that keeps pace.