The labour cost index recorded a 3.3% increase in salary and wage rates in the March quarter, according to Statistics New Zealand.

However, compared with last year's September quarter, the rise is 0.7% lower.

John Christie of the Otago Chamber of Commerce says that a significant part of Dunedin's economy consists of small businesses which struggle to contain costs, so that could have resulted in a limited wage rise.

He also expects local figures to be roughly the same as the national ones.