Cheree Kinnear takes to the streets of Auckland city to find out how Kiwis are being affected by the latest increases to inflation. Video / NZ Herald
Further, significant measures are needed to help low and middle income households survive crippling increases in living costs, advocates say.
Inflation has hit a 30-year high, placing more pressure on household budgets.
Rising food and fuel costs were pushing people to food banks and Work and Income offices for extra support. And advocates said working families are increasingly in the queue.
"It is going to be so hard," said Child Poverty Action Group economist Susan St John.
"You just hear reports from the social sector about the worsening financial condition of families having to go into debt just to pay for ordinary living costs.
"The use of charities … and hardship grants from Winz has just skyrocketed - we know things are grim already."
Council of Trade Unions economist Craig Renney said wages were rising at less than half the rate of inflation, underscoring the need for pay rises.
Fruit and vegetable prices rose 17 per cent in the last year alone, and a litre of 91 petrol jumped by 8.7 per cent despite a Government cut to the petrol duty.
"These are all unavoidable costs for many New Zealanders and hit those with the lowest incomes hardest," Renney said.
The Government has already taken some steps in response to rising costs. Public transport fares have been halved and fuel taxes were cut by 25c/litre. Benefits were lifted on April 1, though this increase was planned before inflation spiked.
More support was needed, advocates said.
St John wanted wholesale, urgent reform of Working for Families, which is being reviewed. Among her recommendations were indexing payments to inflation and wage increases, similar to NZ Super.
She also wants families to be able to earn more before their WFF payments were reduced and for the abatement rate to be lower.
Nick Stoneman, a disability advocate, said he sometimes had to go without vegetables because of food prices. Photo / Supplied
Nick Stoneman, a disability advocate from Christchurch, said the rising cost of food, especially milk, bread and vegetables had dented his household budget.
"I'm noticing it more and more. It's so easy now to go to the supermarket and spend [an extra] $25 or $30 in one go and you don't notice until you get your Eftpos card out."
It meant he sometimes had to leave things out of his shopping basket.
"I have to sit down most weeks and work out what I have to miss out on. It is usually vegetables. The price of a packet of mushrooms is $9 now."
Stoneman commutes by bus to his work. The half-price public transport subsidy had made a big difference, he said.
"That is putting a bit of extra money back in my pocket. I am only topping up my Metro card fortnightly."
As well as working part-time, Stoneman gets the Supported Living Payment and the Disability Allowance. Without the allowance (about $70), he would have around $10 a week left after paying his bills.
Benefit increases on April 1 raised his payments by $29, which did not match increases in costs, he said. And if he works more than 15 hours a week, his benefit payments are reduced.
Stoneman noted that he was fortunate not to have rising housing costs like many other renters. He said his landlord had never increased his rent of $420 a week.
