New Zealand low-income households face rising living costs

Data from Stats NZ indicates that low-income, beneficiary, and superannuitant households in New Zealand are disproportionately affected by the cost-of-living crisis. In the September 2026 quarter, annual living-cost inflation for the lowest fifth of income earners was 3.4 percent, while superannuitant households saw a 4 percent increase. In contrast, the highest fifth of income earners experienced only 2.7 percent inflation.

Over the past three years, living costs have risen by 11.5 percent for low-income households and 12 percent for superannuitants. Sandra Grey, President of the New Zealand Council of Trade Unions, stated that incomes have not kept pace with these increases, particularly as the cost of essentials continues to climb. Significant annual price increases were noted in petrol at 19.1 percent, electricity at 9.3 percent, and council rates and services at 6.2 percent.

Grocery staples have also seen substantial rises, including bread at 8 percent, milk at 7.7 percent, and breakfast cereals at 7.1 percent. The NZCTU reports that real wages for low-income households have fallen over the last three years, contributing to rising food insecurity and hardship.