The Council of Trade Unions is urging the Reserve Bank not to lift the Official Cash Rate on Thursday.
Governor Alan Bollard is widely expected to announce a rise in the rate.
One reason is a forecast by the Treasury of 5.9% inflation for the year to March, 2011.
CTU economist Bill Rosenberg says consumer sentiment remains cautious and there is the continued risk of financial instability overseas.
He says costs are expected to rise sharply due to the Emissions Trading Scheme which begins on 1 July and increases in ACC levies, tobacco taxes and GST.
The OCR is currently 2.5%, which was set on 30 April, 2009. It was 8.25% a year earlier.
