Annual inflation is the highest since June 1990, with housing and transport being the main contributors.
According to Stats NZ, new build home prices are up 16% from 2020, rents are also up 3.8% overall and fuel is up 30%.
Kiwis said they are noticing the price hike.
“My weekly salary isn’t even enough to fill my car or my closets,” one person said.
“Sometimes you can’t afford a bottle of milk, it’s all over the place to be honest,” another said.
“Gasoline prices are the biggest I notice,” one man said.
“We really hear a lot about three main areas, with petrol being the most important, followed closely by food, then rent is a huge issue for a lot of people,” said Consumer NZ chief executive Jon Duffy. .
While prices are skyrocketing, wages are not. The latest data from Stats NZ shows that 42% of Kiwis did not get a pay rise last year and if they did it was below inflation.
“Inflation has a disproportionate impact on low-income New Zealanders and it’s a real problem for us as a society,” Duffy said.
To bring prices down, interest rates would have to rise steadily, hitting homeowners.
“You’re looking at a mortgage rate now in the middle of 3s, it’ll be in the middle of 4s, in the middle of 5s [percent]“says Kiwibank Chief Economist Jarrod Kerr.
But for those who are building a house, there is good news. Construction costs are expected to decline later this year.