Where Do Kiwis Cut Back When We Feel The Pinch?

Sunday, 9 March 2025, 7:56 pm
Article: RNZ

Sunday Morning

While last month saw business confidence up and interest rates down it's not all good news for New Zealand's economy, with many still feeling the pinch as unemployment rises to levels not seen since 2020 and the cost of living crisis forces families onto the benefit in record numbers.

Emanuel Kalafetalis, managing partner at Research New Zealand, joined Sunday Morning's Jim Mora to discuss the results of their recent survey revealing how the struggle to balance costs is forcing many Kiwis to make the hard choice between essentials such as food and healthcare.

Kalafetalis saids their cost of living poll interviewed 1004 New Zealanders over 18 and asked if they struggled to pay for the cost of essentials such as transport, food, and clothing or if they found it hard to cover ongoings bills such as rent, power, water or internet.

Kalafetalis said over 55 percent struggled to pay at least one of these.

"If we translate that, it's one in every two said they'd either gone without or struggled to pay for any one of those."

Young adults were among the hardest hit, particularly young families, while women were worse off than men on average.

The survey revealed those struggling financially were more likely to cut down on healthcare costs over their food bill.

"Not going to the doctor... 33 percent said that they had gone without or struggled to go if they were feeling unwell."

The same proportion struggled with essential bills for things such as water or power, while 31 percent found it difficult to purchase basic goods like clothing or school supplies.

Transport was a financial challenge for 29 percent, he said.

"That's an interesting one because... Metlik have indicated a possible [70 percent] increase in fares."

Just over 1 in 4 or 26 percent found it hard to pay their rent or mortgage, while 24 percent struggled to afford basic food and groceries.

Comparing the results to the same survey conducted a year prior paints a bleak picture, a financial reality that is not "getting any better or worse".

"These results suggest that people are not really seeing the light."

© Scoop Media

RNZ

New Zealand's public broadcaster, providing comprehensive NZ news and current affairs, specialist audio features and documentaries.

Radio New Zealand is a Crown entity established under the Radio New Zealand Act 1995. Radio New Zealand News are vital elements in our programming, providing impartial news and information to New Zealanders every day. Radio New Zealand (RNZ) provides listeners with exciting and independent radio programmes in accordance with the Radio New Zealand Charter.

Contact RNZ

• Website - www.radionz.co.nz
• Twitter - @rnz_news
• Facebook
• Link - Contact RNZ