New Zealanders could be paying more to put food on the table this Christmas, but they may be paying less to put some gifts under the tree.
Stats NZ data shows sharp rises in many food prices in the past year, but smaller price rises or lower prices for many common present ideas.
Dynata polling, commissioned by MYOB, shows the average budget for food and drink over Christmas is $415, while the average gift spend per person is $140.
When it comes to gifts, some are more expensive in the year to September, with chocolate blocks and books both up 10.5% and jewellery and watches up 9.8%.
A pair of socks for dad is about 2.6% more expensive and women’s and children’s clothes have risen by similar amounts.
Plants, flowers and gardening suppliers are up 1.6%, beer is up 0.7%, pet-related products are up 0.6%, and confectionery, nuts and snacks are up just 0.2%.
The price of games, toys and hobby products is down 0.4% in the year to September and the price of men’s clothing has fallen 0.5%.
Electronics have got considerably cheaper, with falls recorded across small appliances (down 5.8%), computing equipment (down 10.6%), telecommunication equipment (down 15.2%) and audio-visual equipment (down 18.4%).
When it comes to food, the price of cabbage has increased 67.2% in the year to November, the price of white bread has increased 53.2%, the price of kiwifruit for the pavlova is up 44.4%, the price of sirloin and porterhouse steaks has increased 26.7%, and the price of lamb chops is up 24.9%.
The price of butter, tomatoes and potatoes have all increased more than 20% and the price of beef mince, milk, mild cheese and broccoli have all increased more than 15%.
Eggs, sausages and blade steaks have increased more than 10% in the year to November, while bacon and oranges have increased more than 5%.
Yoghurt, fruit juice and chicken breasts have all increased about 3%, frozen peas have increased 2.5% and pork chops have increased 2.3%.
Snack prices are up slightly with chocolate biscuits up 4%, soft drink up 1.8% and potato crisps up 0.9%.
Some items are cheaper than they were last Christmas – including rice (down 1.8%), mushrooms (down 5.1%), lettuce (down 12.7%) and carrots (down 12.8%).
Infometrics principal economist Brad Olsen said the latest Infometrics-Foodstuffs New Zealand Grocery Supplier Cost Index showed the wholesale price of beef and lamb had been rising more sharply than pork and poultry, as global demand was rising faster than supply.
“We are expecting Kiwis will be having to shop around a little bit more.
“They will be reconsidering what the Christmas menu might like look because of those higher costs and potentially looking at other options that haven’t changed quite as much.”
MYOB’s poll found only 15% of New Zealanders plan to spend more on presents this year, 56% plan to spend about the same, and 28% plan to cut back.
“For many Kiwi families, the pressure to spend up over the season can be particularly tough – especially when relying on credit and taking on extra work to make Christmas possible can also put an extra load on already strained households,” chief customer officer Dean Chadwick said.
Westpac polling shows only 15% of its customers plan to spend more on Christmas overall, while 42% plan to spend less.
“To reduce financial stress, we recommend sitting down as a family and putting some time into planning out your summer spending and then sticking to your plan,” Westpac New Zealand general manager consumer banking & wealth Helen Ryder said.
Michael Sergel is Newstalk ZB’s business reporter, covering the daily life of business and the business of daily life. He’s been covering business, politics, local government and consumer affairs for over a decade.