The rising cost of living in the return of inflation is hitting Kiwi's hard. Inflation currently sits at a 32 year high of 7.2%. Video / NZ Herald
The rising cost of living and the return of inflation is hitting Kiwis hard. NZME is broadening its coverage of the cost-of-living crisis impacting all New Zealanders. We look at how skyrocketing costs are impacting us all, and seek advice from experts and locals on how to manage your finances through these tough times.
Food prices were the largest contributor to the latest inflation figure. Vegetables jumped 22 per cent in the year to March 2023, while ready-to-eat food and milk, cheese and eggs increased 9.7 percent and 15 percent, respectively.
The 6.7 per cent increase followed a 7.2 per cent increase in the 12 months to December 2022.
While annual inflation is a measure of the country’s economy, there are also other government datasets that are more relevant to the experiences of New Zealanders.
The Herald has used data from the Food Price Index and Household Living-costs Price indexes (HLPI) to create an interactive price tracker for readers to explore.
The HLPI includes mortgage interest costs and is a better reflection of the increases faced by many households.
For the year to December, the average household cost increase was 8.2 per cent - a whole percentage point higher than the official inflation figure. The highest-spending households, often those with big mortgages, had a price increase of 9.4 per cent.
While data can seem abstract, it is just carefully collected experiences of individual people and as part of this editorial project, the Herald will regularly share those stories.
Manurewa’s Waka of Caring hands out between 200 and 250 food parcels a day to people struggling to make ends meet.
An Auckland fast-food worker told the Herald about her constant struggle to afford food and other essentials while a Wellington student said he had hardly brought any fresh fruit and vegetables over the past year because he could not afford them.
The Herald has spoken to several people affected by rising costs and their stories will be published regularly as part of our Cost-of-Living editorial project.
Papakura Marae: ‘It’s gotten worse’
Papakura Marae chief executive Tony Kake. Photo / Julia Gabel
It’s Tuesday afternoon and supermarket shopping trolleys full of food are lined up outside the wharekai at Papakura Marae.
There is bread, milk, meat, tea, kids’ snacks and cereal – everyday needs that have become unaffordable for many as the cost of living crisis intensifies.
Inside the wharekai, the staff that keep Papakura Marae ticking over are sitting down for lunch. The marae is living, breathing community hub with more than 50 services for whānau in the area – from free driving lessons and a community kai night to the health centre.
Soon, cars will begin arriving outside and staff will hand out between 40-60 food parcels, mostly to families.
“It’s a blessing,” a father waiting for a food parcel told the Herald.
“Having kai for the kids, that’s the main priority.”
Charlie Jones, of Papakura Marae, takes down the details of a family waiting for a food parcel. Photo / Julia Gabel
The man, who did not want to be named, said without the support of the marae’s food bank, his family would find it hard to put food on the table every week.
“I used to be able to get $100 worth of kai from the supermarkets and the trolley would be full, but now for $100 is only like seven things, not even that.
“Without [the marae’s] support, everyone would find it hard because the food prices have gone up and all that.”
In the year to March, food prices jumped 12.1 per cent and although food price inflation is expected to cool, ASB senior economist Mark Smith said a difficult year lies ahead for consumers.
“We’re currently seeing exceptionally high prices,” Smith said.
Shopping trolleys of food at Papakura Marae ready to be handed out. Photo / Julia Gabel
Papakura Marae hands out between 40-60 food parcels a day. Photo / Julia Gabel
Papakura Marae chief executive Tony Kake said a one-off expense – like a broken-down washing machine or fridge – can knock down a family already struggling for weeks.
“The ends weren’t meeting two years ago, even a year ago. It’s gotten worse, the ends are still not meeting.”
Kake said the marae written off tens of thousands of dollars in medical bills last year because they have a “policy”.
“No one leaves the marae without the medication they need as opposed to what they afford,” he said.
Kake said the recent decision to increase benefits was “awesome” but more needed to be done for the wages for professionals, particular new-entrant teachers.
“Three-year degree and barely getting more than what they would get on the dole.”
Student Aidan Donoghue at Victoria University's Pipitea campus, Wellington. 16 March, 2023. Story: Julia Gabel. NZ Herald photograph by Mark Mitchell
Wellington university student Aidan Donoghue has hardly brought any fruit or vegetables in the last year. Instead, him and his partner take vitamins and supplements to get nutrients because it’s cheaper.
“We occasionally get an avocado but they’re $2 and we share that between us once a week,” he said.
“There are times where you crave an actual banana rather than something that is banana-flavoured. Since I’ve moved here, we have done big shops and don’t get any fruit and veg. There was a time when I can remember where we got broccoli and potatoes and that was about it.”
Donoghue works part-time at McDonald’s and relies on the free meals the nights he works. He also receives payments from Studylink.
Still, he is struggling. At 19, Donoghue said there is not a Saturday night that passes where he doesn’t wish he could walk out of his Wellington central apartment, where he lives with his partner, and join the party.
Donoghue said his clothes are thrifted or bought using Afterpay, an interest-free “pay as you go” service.
“We’ve had a very isolating time. It’s just me and (my partner) against the world.
Donoghue is a member of Unite union and several Victoria University clubs, including Students for Living Wage and the university brand of the young Labour party.
“I don’t think there has been a week that has gone by where I haven’t wished I could have gone out.
“It would be nice to live in a world where I don’t have to worry if I miss paycheck if I’m not going to make week.”
Empty cupboards: ‘I don’t have any food’
An Auckland woman looks into her kitchen cupboards and finds nothing that can fill her stomach.
There are a few spices, oil, rice, sauce and an onion but nothing she can make a meal with. In the fridge, there’s a bottle of old coconut water, some butter and miso soup.
“What am I am going to have for dinner? I have no idea. That’s the thing, I have no idea and that’s not a nice feeling,” the 25-year-old said (the Herald has agreed to withhold her name).
“Literally, I don’t have any food here right now.”
She walks into her bathroom and the same bleak emptiness greets her. There is toilet paper, disinfectant, but her shampoo, conditioner and moisturiser – which she refers to as “spoiling” herself - are going to run out soon.
“I’m looking around the house and thinking I need a big top up, a big shopping spend, and I can’t.”
She works part-time and receives a benefit. Almost half of her income goes towards the rent for Flat Bush apartment. She says her mental health issues have become worse recently as she stretches what’s left to cover essentials.
“I need to buy cookware for cooking so that I can save more money but I can’t even afford (it). Something that is essential has now become on the luxury list.
“I go to the second hand stores [but] there are certain things I would never buy second-hand, like underwear and bras, and I need new bras right now, and that would be lovely if I could just go buy that for myself but I can’t afford it.”
Family’s food budget doubles over three years
Cost of living series - fighting the food bill. Chanchal Saraswat 20 March 2023 The Bay Times Photo / Andrew Warner
The food budget for Chanchal Saraswat’s family has doubled in three years, but the Tauranga mother saves money in her weekly shop by buying seasonal vegetables, buying in bulk and sharing with others.
When the Bay of Plenty Times last spoke to Saraswat in 2020, she had a weekly budget of $120 to feed her family, but that has ballooned to between $250 and $300.
The increase was largely due to the cost of food, she said, but their two sons, aged 10 and seven, were eating more than they used to.
Saraswat works part-time and her husband full-time, and each week she plans meals and creates a list of the groceries she’ll need to feed the family and their two dogs for the week.
To help keep costs down, Saraswat buys seasonally, heads to the farmers’ market, trades goods with other people and buys in bulk.
“We plan what specials are there, what specials on fruits and vegetables are there, because they help reduce the cost.
“Going to the farmers’ market is always helpful because it’s cheap and fresh and sometimes gives you a deal - it’s always a good place to go.”
The family, who own a home in Bellevue, avoid getting takeaways as best they can and Saraswat prefers cooking from scratch and avoiding processed, unhealthy foods.
“I’ve been doing it for so long so it’s easy-peasy, but you have to want to do it,” Saraswat said.
“Starting the process is a bit challenging, but once you’re into it, you know where to go, where it’s cheap.”
William MacPherson says living on a pension is a struggle with high food and rent prices. Photo / Jason Oxenham
Pensioner William MacPherson has struggled to make ends meet every day since he retired. The 73-year-old lives alone and says his fixed income is too small to live a “normal life”.
He feels isolated and constantly unsure whether he will be able to cover his bills.
“I have to get Work and Income to get a food card and a petrol card because I haven’t got enough,” MacPherson said.
“I get food parcels from two different sources to survive.”
Since retiring last year after 56 years in the welding industry, MacPherson was forced to cancel the life insurance he has had since 1972, as well as his house and contents insurance, because he can’t afford it.
He admits he hasn’t been wise with money in the past and entered retirement with no savings, but he believes better financial support for retirees who have limited resources is needed.
“[It affects] every aspect of my life, I don’t feel like a normal human being. You can’t say, ‘I think I’ll pop down to Botany and have a look around the shops and maybe have a coffee and lunch’, because I haven’t got the money.
“You can’t do what a normal person does in life.”
MacPherson’s daily treat is a takeaway coffee. He sits at a local beach with his coffee and does the crossword in the newspaper for two hours.
“That’s all I do and that’s a struggle,” he said.
“That’s $5.50 a day. Should I really be doing that? No, I shouldn’t but it’s only real pleasure I get … I enjoy it.”
Waka of Caring: “I see people starting to give up”
Debbie Munroe outside the Waka of Caring store in Manurewa. Photo / Julia Gabel
Debbie Munroe spends her days trying to help people make ends meet. She runs Waka of Caring, a store in Manurewa where people can pick up food, clothes, books, linen and other goods for free - or just stop by and have a chat.
Munroe said the biggest concern for those visiting the space is not being able to feed their families.
When Waka of Caring first opened four years ago, Munroe and her team were handing out less than 100 parcels a day.
Today, that has increased to between 200 and 250.
“You pay your rent, the power, you pay for the gas and then what’s left over after your wages?
“I see people starting to give up. I see more and more people going, ‘stuff this, I would rather live in my van with my kids, at least I know I can feed them’.”
As food prices continue to rise, jumping 12 per cent last month compared with February last year, Munroe says everyone is affected by the cost-of-living crisis, including herself. Her work at Waka of Caring is voluntary and she receives the unsupported child’s benefit.
“I don’t buy what I used to buy. I still buy veges, I buy very little meat, stopped buying the kids treats.
“Once in a while, I buy the kids ice cream. That’s about it. I used to buy [them] chocolate and custard when I couldn’t be bothered making custard. And I don’t bake as much because the flour, the margarine, eggs ...”
Young couple: ‘Food is through the roof’
Daniel Wu with his fiancee Cassandra. Photo / Supplied
Insurance broker Daniel Wu can’t remember the last time he went on a date with his partner.
The couple used to prioritise time alone regularly, but with rising prices and the pressures of starting a new business, date nights have become a rarity.
“We’ve found it extremely difficult to even consider putting money aside because we are actually at a negative right now per week,” he said.
“I can’t remember the last time we had a date night.”
Wu lives in his own home with his partner and father and has felt the pinch from the rise in interest rates and food prices.
“Food is bloody through the roof. When you go to the grocery store, vegetables, healthy stuff, is crazy … $8 for a bag of spinach, are you kidding me?
“Meat prices, at one stage, used to be affordable, and now it’s still a luxury. Mince is okay but for premium, good, healthy less-fat mince, it’s still $20 a kilo. In all aspects, it has gone up.”
Wu said he has about $50 a week left over after his bills are paid but has found “creative ways” to save money.
“One thing we’ve done is meal prep,” he said.
“We are able to spend just over $100 for both of us to prep every Sunday night for 10 meals. That means we are not going out and eating, we are not having take-out, we are eating healthier.”
