A matter of time before small businesses further contribute to inflation

Xero's Small Business Index shows New Zealand small business wages have gone up by 5.3 percent, and jobs are up 4.1 percent, bucking international trends.

Managing Director Craig Hudson says while it's great for workers, the rise means small business owners are taking less home.

He says they have less to invest back into their business, and less to care for their own whanau.

Hudson says consumers should be ready for small businesses to put their prices up.