An economist says the sharp increase in the Consumer Price Index this quarter will hit low income households the hardest.
The CPI rose 0.9% over the 2013 September quarter, bringing it to a 1.4% increase for the year.
Council of Trade Unions economist Bill Rosenberg says a rise in housing costs, food and vegetable prices and petrol prices will affect low income households the most.
He says low income households are experiencing higher price rises than other households which could add up to $50 to $100 more a year on their costs.
Mr Rosenberg says rising housing costs are largely responsible for the CPI's rise, especially in Canterbury, where they have increased by 7% this year.
He says the Government needs to urgently address the escalating price of housing.
