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The Council of Trade Unions (CTU) is proposing the government introduce new legislation to tackle inflation and cost of living woes.
It comes amid grim economic forecasts for New Zealanders and predictions of a recession in 2023.
The council's chief economist Craig Renney believes an Inflation and Incomes Act would set "binding targets" for the government over time.
A lack of longterm economic planning is being blamed by the CTU for the cost of living crisis.
A report into the legilsative proposal states inflation was seen as a short-term crisis associated with international economic disruption.
"In reality, it is a long-term issue associated with New Zealand's present economic model.
"This model has delivered decades of under investment in the economy and in the public realm."
Renney told RNZ's Morning Report the legal framework would focus on core inflation and ease pressure on the Reserve Bank.
"The Reserve Bank would still have the role it has right now to target general inflation," he said.
"What we're asking the Inflation and Incomes Act to do is to target core inflation, those parts of inflation people can't avoid, like petrol, rental costs, food costs, we think those things are complimentary.
"If that core inflation is lower because we've acted in ways to increase supply, to get rid of bottlenecks, to increase competition, then actually that makes the Reserve Bank's job in tackling general inflation a lot easier."
Renney called on the government to revist the Commerce Commission's report into the grocery market.
"Supermarkets are making a million dollars a day in excess profits in New Zealand."
The government is however advancing law changes designed to press supermarket retailers into wholesaling groceries to rival retailers on more competitive terms, making it tougher for supermarket owners to use land covenants to hamper competitors.
Cabinet is expected to consider whether it should consult with the public on the idea of forcing Countdown and Foodstuffs to sell some of their stores or chains to help make way for a third competitor.
Renney said the Act would function in a similar way to the Child Poverty Act.
"It sets binding targets for the Crown over time," he said.
"We want to see over the period of time, the Crown have to demonstrate how its policy suites will be delivering a stablising and lowering of inflation on those core parts.
"How do we get more people out of housing stress - we build more houses, for example."
Renney said the proposal was not about pricing controls but encouraging greater supply and competition, alongside government policy.
