David Cunliffe
Finance Spokesperson

15 October 2009 Media Statement

Cost of living: Kiwis find it tougher and tougher

The higher than expected jump in living costs in the September quarter highlights the problems faced by hard-working New Zealand families battling to make ends meet, says Labour Finance spokesperson David Cunliffe.

“Today’s living costs statistics simply confirm what hundreds of thousands of Kiwis already know --- that food costs are rising sharply while they have no compensating increase in income to help them foot their family grocery bills,” David Cunliffe said.

David Cunliffe said today’s news that the cost of living has increased 1.3 percent in the September quarter --- well above the 0.8 percent forecast by economists --- followed the New Zealand Income Survey for the June 2009 quarter showing almost no change in median weekly income (up $2 to $538) from the June 2008 quarter.

“In other words, struggling families are getting relatively less money to pay weekly bills that are becoming more and more onerous.

“The situation is even worse for thousands of Kiwis who have lost their jobs through no fault of their own during the recession,” David Cunliffe said.

“The difficulties are compounded even more because increased food prices, particularly for vegetables, are strongly driving the overall increase in living costs. Electricity, another fundamental and unavoidable cost for many, is another strong contributor.

“They are going to find it even harder in the future, because these same New Zealanders now face hikes in ACC levies as well as having to pay for the pollution caused by big polluters.

“The Government needs to stop talking the economy down and to show it has a real plan to help hard-working Kiwi families battling to make ends meet. Kiwis have accepted that the past months have been tough times, but now they face the reality that their situation is getting worse, not better.”

ENDS

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