Inflation has remained at an annual rate of 7.2 per cent, driven by higher prices for airfares, food and housing-related costs.
Video / NZ Herald
The number of financial emergencies is on the rise, and a Wellington budgeting service says it is struggling to meet the demand for help.
Gary Sutton, from Newtown Budgeting and Advocacy Service, says with inflation sitting around 7.2 per cent, people with low incomes or beneficiaries are struggling.
“We’re findingthey’re struggling to meet their basic expenses and we have a lot more referrals now to the Wellington City Mission for food.”
Even the social supermarket, set up for people in emergencies, can only stretch so far.
“They try to save it for emergencies but the number of emergencies is increasing – so we’re running out of options.”
The 7.2 per cent increase follows another 7.2 per cent annual increase in the September 2022 quarter, and a 7.3 per cent increase in the June 2022 quarter.
Housing and household utilities were the biggest contributors to the December 2022 annual inflation rate.
“The cost of living is accelerating at a rapid rate and any benefits or salary increases are lagging further and further behind and more people are struggling,” Sutton told NZME.
He’s seen a 30 per cent increase in the number of people he is consulting with to help with their financial emergencies.
“We do all we can but we are running out of options to help them because the benefits are stretched as far as they can be.”
With costs already stretched as far as possible Sutton is concerned about the lack of “wiggle room” - people have no way of saving, which means costs like insurance or car registrations have to fall by the wayside – often with the possibility of a large bill down the line.
“The cost of living is wiping out any cushion, any chance of being able to get them in a stronger financial position and they’re struggling.”
