Cost of living index wanted

An advisory committee chaired by National Bank chief economist Dr John McDermott found Statistics NZ's consumers price index did a good job of measuring inflation for the purposes of the Reserve Bank and, therefore, the financial markets.

The committee recommended only minor changes to the CPI, such as scrapping the seasonal adjustment of fruit and vegetables.

But it recommended it be supplemented by an annual cost of living measure more tailored to such purposes as pay negotiations or the indexation of benefits.

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