Drought to increase hardship Budgeting guru

The cost of living is continuing to rise and a local budgeting guru said he expected Wairarapa prices to increase in the aftermath of the drought, putting further strain on hard-pressed families.

Wairarapa Free Budgeting Service manager Grant Howard said the stress of trying to budget for many families in the Wairarapa who are living week-to-week "can be diabolical".

"Everything is going up, there's an increase in prices but no increase in wages."

Mr Howard said that he thought the cost of living had made it increasingly difficult for the average worker in the district to get by.

He said vegetable and fruit prices were on the rise and it was also expected that the cost of meat, milk, butter and bread would also be affected.

The budgeting expert predicted that the adverse implications of the drought would ensure that everyday food and fuel prices over the coming months would "skyrocket".

"Petrol prices are going to skyrocket this year and it's going to be harder for people.

"Because of the drought the cost of vegetables is going to be expensive."

Mr Howard spoke to the Wairarapa Times-Age after a Canster Blue nationwide survey revealed almost half of New Zealanders were living day-to-day without a nest egg or savings.

The company interviewed 2240 people, including people in Wairarapa and 44 per cent of respondents said they were living pay day to pay day.

Mr Howard said he was not surprised by the results of the survey but said it was important for people to have some savings put aside in case of an emergency.

He said it was also important to shop carefully. "It can be difficult for some people. It's very important you have some savings," he said.

"Your vehicle may break down or you may have unexpected medical expenses. You need to have some money put aside if you can."

Masterton Food Bank co-ordinator Maureen Potts said the increasing cost of living was already ensuring that many families were under severe pressure and this was having a big impact on their mental and physical wellbeing.

"I'm sure the cost of food has risen, that impacts on the higher numbers of people coming to us.

"Winter is coming as well and the cost of higher heating costs will make it much more expensive for people and will continue to impact on families surviving."

Mrs Potts said it took courage for people under financial pressure to contact Masterton Food Bank.

"It's very stressful. It's difficult for people to approach the food bank and when they do we see that stress."

Analysis of prices for the year to December showed avocados and kumara more than doubled in price.

Pumpkin prices surged 32 per cent and apples cost 20 per cent more, Statistics NZ said.