Kiwis are spending more, but getting less bang for their buck

The Infometrics quarterly economic monitor shows a 0.9 per cent rise in annual economic activity for the 12 months to June.

But Principal Economist Brad Olsen says although there's underlying growth, households facing inflation are making tough calls about where to spend their money.

He says their analysis suggests about 40 per cent of the spending increase is due to higher prices, rather than people getting more for their money.