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Another week, and another blow to everyday New Zealanders.
The cost-of-living crisis doesn’t seem to be easing; international relations are a minefield – even allies aren’t safe from the political blue-on-blue action.
On January 28, Infometrics released an article looking at the rising cost of essentials, which is driving inflation.
The increase in essentials costs was driven by a larger gain in electricity prices, up 12 per cent per annum, gas prices, up 16 per annum, various higher insurance prices, as well as meat and dairy prices.
The author, Brad Olsen, said that over a longer period of time, it’s clear that the essentials
inflation is both more volatile and generally higher than discretionary inflation. Over the last 20 years, essentials inflation has averaged 3.2 per cent per annum, compared to 1.8 per cent per annum for discretionary items.
Those figures also underscore current challenges. Although discretionary pricing pressures are around long-term averages, essentials pricing pressures are above long-term averages and still accelerating.
So, what does this mean for the average Kiwi? Well, most of us already know, and it’s seeing our weekly grocery bill increase while what’s in our trolley is shrinking. And for most of us, pay rises are few and far between.
With kids heading back to school, it’s an expensive time for many parents. Just the other day, I read a post in a local community group where a parent was asking for advice on where to buy four tablets for their school-aged kids. For many families, purchasing one tablet for children to use is expensive. I can only imagine the extra burden that purchasing four tablets placed on this family.
With pressure from so many sides, it can be hard to take a step back and have a breather before continuing on.
The Mental Health Foundation says that hope is key to getting through difficult times.
Cultivate your sense of hope and tend to it often. Actively seek out positive stories of human connection and love (please send through your positive news tips!), think about people you look up to and what you admire in them, and seek advice from people older than you who have made it through hard times.
Keeping hope alive is the most powerful thing you can do.
