New Zealand is expensive, Reserve Bank economist says - here's what we can do about it
New Zealand is considered an expensive country, with many products priced above the OECD average, according to Reserve Bank chief economist Paul Conway. The country's high prices, particularly for construction services and household utilities, are contributing to a sense of a 'cost-of-living crisis'.
New Zealand is an expensive country, with many products priced above the OECD average. Construction services and household utilities are among the most expensive. The price of essentials has increased significantly since the pandemic, with overall prices rising by 26% and wages increasing by 32%. However, the rise in wages has not been evenly felt, with people who changed jobs more likely to have received larger increases. The high cost of living is a major concern, with low and stable inflation only part of the solution. To improve purchasing power, New Zealand needs to increase productivity, as real per capita income is below the OECD average.
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