There's a call for a decent pay rise for workers, now that inflation has fallen for the second quarter in a row.

First Union says the best way to guard against deflation is to increase workers spending power, with a pay rise of "at least three to four percent."

Spokesman Robert Reid says the time is right for a substantial pay increase.

"That will actually help New Zealand out of its deflationary spiral, put more money into workers' pockets."

"It seems that a number of employers and the government itself has said 'well, if inflation is down, wage rises should be down as well'. That actually doesn't make any sense at all. We're in danger of getting into deflation."

Official figures show inflation fell by 0.3 percent in the March quarter - the first time there have been two consecutive quarterly inflation falls in 16 years.

But Westpac senior economist Michael Gordon believes it's not necessarily a bad thing.

"I don't think deflation itself is a danger, and part of the reason for that is we're really being hit by a few shocks that are actually positive things. Cheaper fuel makes it easier and cheaper for everyone to be doing business."