New figures show the cost-of-living crisis is continuing to hit lower-income households and superannuitants harder than wealthier New Zealanders, highlighting a growing divide in how inflation is being experienced across Aotearoa.
The latest Stats NZ data reveals that while inflation has eased from its peak, many families are still struggling with the rising cost of essential goods and services. Those on lower incomes are feeling the pressure most acutely because a larger share of their household budgets is spent on necessities that continue to increase in price.
For many whānau, the biggest financial pressures remain electricity, council rates, healthcare costs, petrol and groceries. These are expenses that cannot easily be avoided or reduced, leaving households with fewer options when prices climb.
Families on fixed incomes, including many superannuitants and beneficiaries, face particular challenges because their income often does not keep pace with the increasing cost of everyday essentials. As a result, more households are being forced to make difficult decisions about spending, with some cutting back on food, delaying medical appointments, reducing travel, or putting off other important household expenses.
The figures also raise concerns about the impact on working families. While employment remains high, wage growth has not always kept up with the cost of living for lower-income earners. This means some workers are finding that despite being in employment, their pay packets are stretching less far than they did in previous years.
Community advocates say the consequences are being felt beyond household budgets. Financial stress can affect health outcomes, educational opportunities for children, housing stability and overall wellbeing.
There are growing calls for targeted measures to support those facing the greatest hardship. Suggested responses include increasing income support for low-income households, boosting benefits and superannuation adjustments, expanding access to affordable healthcare, addressing energy costs, and ensuring wages better reflect the real cost of living.
As political parties sharpen their focus ahead of the election, the latest data serves as a reminder that inflation does not affect everyone equally. For many New Zealanders, particularly those on lower incomes and fixed incomes, the cost-of-living challenge remains a daily reality.
