Kiwis Spending Big on Groceries Amidst Soaring Prices
19/12/2023
Auckland, NZ – The grocery pinch continues for Kiwi households with new research revealing the average family spends up to NZD 300 a week just to put food on the table. However, shoppers need to watch out for false discounts from retailers seeking to capitalize on the inflationary environment.
A survey by consumer research firm Canstar Blue underscored families’ hefty food bills, with fruits and vegetables alone eating up almost 30% of total weekly grocery costs. This aligns with an over 8% nationwide spike in food prices last year. Compounding pressures is relatively slow wage growth that sets many consumers back in real terms.
“We saw low and middle-income groups dedicating a large percentage of income on groceries,” said Joseph Pedley from Canstar Blue. “Your average family of four could easily rack up a $250-300 bill despite trying to cut costs.”
Some point to rising fresh produce prices as a key driver, with vegetable prices alone surging 10% last month due to poor weather conditions hampering yields.
“Healthy eating is important here so I can’t cut back on fruits and vegetables even though prices are crazy high,” said working mother Sarah Smith. “I’ve had to cut spending in other areas just to get by.”
In response to climbing living costs, the government unveiled a NZD 350 cost-of-living payment in the recent budget alongside considerations of fuel tax cuts. However, the opposition criticized such relief measures as inadequate and short-term fixes.
As Kiwis grapple with inflated grocery expenses, analysts warn this makes conditions ripe for retailers to lure customers with deceptive discounts. “If a company advertises 50% off, make sure you’re getting an item at half price compared to usual prices,” said Commerce Commission’s Anna Rawlings. She advised examining fine print carefully and using comparison websites to research authentic pricing history. Consumer NZ meanwhile highlighted how certain high-pressure tactics like flash sales also prey on buyers.
As the busy shopping season picks up pace, consumers need to stay vigilant when navigating retailers’ discount offers so as not to be sweet-talked into purchases that may not represent genuine savings at all.