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Rising fuel prices are not the only thing making life in New Zealand more expensive | Stuff

ASB economist Kim Mundy said the cost of living was rising, particularly for day-to-day expenses like rent, fuel and electricity

“These are the necessities that a household faces and it’s harder to avoid some of these costs,” Mundy said.

Prices for things people spent their discretionary income on, like technology, had been increasing slowly, and actually falling in some cases, she said.

“People tend to feel the impacts to changes to their living costs than the overall basket of goods.”

It was important to gauge household living costs because that gives an indication of how different households were coping with different changes in costs, she said.

While government policy had resulted in some price rises, international factors were also to blame.

“There’s a lot of different elements at play when break down why specific costs are rising or not.”

For example, fuel prices had been impacted by a falling New Zealand dollar and rising oil prices.

“We’re actually quite impacted by offshore influences just as much.”

While household living costs were rising, they were also being offset by minimum wage rises and Working for Families packages increasing, she said.

“While we are seeing increases in household living costs we are also expecting to see people’s incomes improving to a degree.”

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Rising fuel prices are not the only thing making life in New Zealand more expensive | Stuff.co.nz.