Malini Yugendran
Auckland, November 2, 2022
New Zealanders will need an extra $110 per week to keep up with soaring costs, ASB Economists have said.
Quoting Statistics New Zealand, a report said that the rate of inflation was 7.2% in the third quarter of the year and that the Consumer Price Index (CPI) rose by 2.2% at the end of the September 2022 quarter. These figures are based year-on-year.
Consumer Price Index
The Consumer Price Index keeps track of changes in the prices of products and services. The CPI tracks price fluctuations for the same items at each outlet over time. The CPI covers prices of food, alcoholic beverages, tobacco, clothing, footwear, housing and household utilities, household contents and services, health, transport, communication, recreation and culture, education, and miscellaneous goods and services.
The CPI is gathered in three ways: through store visits, mail surveys, and the Internet.
The decline in supply caused by the Russia-Ukraine war, the consequences of the pandemic on the economy, and the revived demand has caused the soaring of prices. This means New Zealanders will now need to spend more money on the same products.
Cost-cutting measures
ANZ economists said that customers buy in bulk, especially grocery items that are used every day. Buying in bulk may be less expensive than buying small portions every week. However, bulk buying should only be for products that have a long shelf-life, they said.
“Look out for products on sale and work a menu around that product. Buy products that are in season. When produce is in season, it is typically cheaper and more plentiful. So, the purchase of seasonal fruits and vegetables will help save money. Making a meal plan and sticking to it will ensure that you do not indulge in impulsive buying. Meal plans also help avoid the amount of food that is being discarded,” they said.
New Zealanders have an affinity for subscriptions and now is the time to consider if some, if not all, are necessary. Economists believe that cancelling unnecessary subscriptions can help an individual household save $500 or more. Bank statements and credit cards will list subscriptions, from which unnecessary items can be deleted.
According to Money Hub, you can also renegotiate your insurance policies by shopping for cheaper options, especially for your car and home. If you are single and have no beneficiary, rethink your life policy. If you have multiple credit cards, rethink their necessity and cancel credit cards that charge a higher fee and switch to low-cost cards.
Rethink apps that allow you to pay in instalments after buying. Stretched-out payments create an impression that the cost is smaller and can trigger impulsive buying. Save up money for the things that you need.
Shop around for cheaper service providers, from mobile service providers, and broadband service to power suppliers. Power Switch offers free, impartial checks to identify the lowest energy and gas package from participating vendors based on your usage.
Hacks for Students
A government website suggests that buying fruits and vegetables at a local market will help save money as compared to buying them in supermarkets. Sharing food expenditures and making meals with your flatmates is another method to save money.
Using your student ID to get discounts at local stores and restaurants is another way to save money. Buy preloved items at op shops such as the Salvation Army and the Red Cross or use TradeMe. as opposed to buying brand new products.
Walking and cycling where possible can be healthier alternatives to using other modes of transportation.
Where to find help
Financial difficulties can be distressing, especially during these times when the cost of living keeps soaring. If you are concerned about meeting your financial obligations, the New Zealand government can assist you.
You can get up to $200 to help pay utility bills. Please visit MSD.
You can get up to $261 on childcare subsidies through Work and Income.
The government also offers help to people with disability and illnesses. For more information, please visit www.govt.nz/browse/health/financial-help/
Malini Yugendran is an Indian Newslink reporter based in Auckland.
