Household budgets so stretched it's no longer a cost of living crisis but 'the cost to survive'
A new study of New Zealand household budgets finds that families have moved past the cost of living crisis and into a 'cost to survive' phase. Average weekly food spending is up 11% over the year and rents have risen 9%. The Otago University research has reopened the economic policy debate.
A comprehensive survey of 2,400 households by the Economic Inclusion Research Unit at Otago University finds that household budgets have undergone a structural strain over the past six months, driven by food and housing. According to the data reported by RNZ, average weekly food spending is up 11% year on year and average rent is up 9%. Around 38% of total household spending now goes to essentials.
Dr Suzanne Olsen, who led the research, said the survey responses show that families 'have moved from a cost of living crisis to the cost to survive'. She added: 'Mothers who say they will skip buying vegetables to put one hot meal on the table now make up half of our interviews.' The survey found that 47% of households with children had been late on an electricity or internet bill at least once in the past three months.
Finance Minister Nicola Willis said in a budget speech that rent assistance for low-income households would be reviewed. The opposition Labour Party is demanding a comprehensive inquiry into food prices. The Reserve Bank of New Zealand will add an important indicator that is expected to feed into next week's policy decision.
More from Australia-Pacific
Aspiration has changed since the Howard era. This budget is finally catching up
Treasurer Jim Chalmers's 2026-27 budget proposes a sweeping reorientation of housing, childcare and education incentives. According to ABC analysis, the budget breaks with the middle-class identity of the John Howard era and refocuses on a younger generation of renting voters.
Musk's X admits noncompliance with Australian child protection request
Social media platform X, owned by Elon Musk, has admitted it did not comply with a formal eSafety Commissioner notice requiring it to remove content involving child sexual abuse. The company faces fines of up to 800,000 Australian dollars per day. A federal court preliminary hearing has begun.
Will drastic NDIS overhaul repeat the mistakes of the past?
Australia's planned overhaul of the National Disability Insurance Scheme is raising fears that the cuts could repeat the mistakes of the 1980s deinstitutionalisation wave. Advocates and health experts warn sudden changes could leave a serious care gap.