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Home / New Zealand

Northlanders still struggling with cost of living despite cheaper fruit and vegetables

Jenny Ling
By Jenny Ling
Multimedia Journalist·Northern Advocate·
25 Aug, 2024 05:00 PM4 mins to read

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Fruit and vegetable prices decreased 8.5% in the 12 months to July, but many Northlanders are still feeling the pinch of high food prices.

Fruit and vegetable prices decreased 8.5% in the 12 months to July, but many Northlanders are still feeling the pinch of high food prices.

The cost of fruit and vegetables may have come down lately, and mortgage lending rates may have been lowered, but many Northlanders are still struggling with the skyrocketing cost of living.

According to the latest Stats NZ figures, fruit and vegetable prices decreased 8.5% in the 12 months to July 2024, while meat, poultry and fish were down 1.1%.

Cheaper prices for kūmara, lettuce and potatoes drove the fall in fruit and vegetable prices.

Kūmara prices dropped to $5.72 per kilogram, almost one-third of the peak price of $14.25/kg in January.

Kerikeri resident Monika Welch, who provides food for struggling families, said she had noticed fruit and vegetables had come down in price, particularly seasonal vegetables like pumpkins, which “were very cheap”.

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“I can’t say that for anything else,” she said.

“People are still struggling with food and power.

“I’m on my own and I can feed myself, but the other day I went to the supermarket to get a few things - four things came to $38.”

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Welch said other items that have significantly increased in price are meat and olive oil.

A 500ml bottle of olive oil was on special for $13, while other brands were $16 and $17, she said.

“You used to get a 500ml bottle for $10.

“On the whole, meat is still outrageous. I thought to myself, ‘How are people doing this with children?’”

Kerikeri resident Monika Welch said though fruit and vegetable prices had come down, people were still struggling with the cost of living.
Kerikeri resident Monika Welch said though fruit and vegetable prices had come down, people were still struggling with the cost of living.

The recently released Stats NZ figures show overall food prices in New Zealand increased 0.6% in the 12 months to July 2024.

This was partly driven by higher prices for restaurant meals and ready-to-eat food, which increased 3.7%.

Bald Angels Charitable Trust founder Therese Wickbom, whose charity helps vulnerable Far North families, said residents across the board were noticing fluctuating food prices.

Wickbom said her colleague went to the supermarket this week and saw a packet of butter priced at $10.

Wickbom also popped in to pick up a few things and noticed avocados and broccoli were “a reasonable price”.

“$10 is a lot of money when you don’t have a lot.

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“But it’s going to take more than avocados being two for $2 or $2 for broccoli to make a big change in a family’s food budget.”

Wickbom said the charity was getting “far more” referrals for support than they’ve ever had.

Bald Angels Charitable Trust founder Therese Wickbom said it’s going to take more than avocados and broccoli costing $2 to make a big change in families' food budgets.
Bald Angels Charitable Trust founder Therese Wickbom said it’s going to take more than avocados and broccoli costing $2 to make a big change in families' food budgets.

“It’s the cost of living and everything that goes with that.

“We are dealing with some of the more vulnerable whānau in the community via our partners, and that’s who we’re here to support.

“We’re hearing stories of whānau who are really struggling with housing and basic necessities, and then of course, you go wider than that and people are stressed and there’s a tendency to look for something to deal with the stress, which might be substances, which might lead to additional stress.

“So there’s a knock-on effect to the cost of living and the price of groceries.”

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Meanwhile, the Reserve Bank cut the official cash rate (OCR) 25 basis points from 5.5% to 5.25% last week.

It is the first cut since March 2020 and a positive move for homeowners under pressure from high interest rates.

New Zealand’s major banks moved swiftly in lowering mortgage lending rates after the reserve bank’s decision.

Infometrics chief economist Brad Olsen said the cuts “won’t be enough to suddenly change homeowners’ fortunes, but it’s a start”.

Infometrics chief economist Brad Olsen said the cut to the official cash rate on Wednesday was a start.
Infometrics chief economist Brad Olsen said the cut to the official cash rate on Wednesday was a start.

“We’ve already seen a few banks move their interest rates.

“So that will start providing a little more relief as to how much people spend on their mortgages and how much they spend elsewhere.”

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But Olsen said people are still struggling.

He predicted interest rates wouldn’t come down to around 4% or 5% for another couple of years.

“The decision made yesterday doesn’t mean anything for many people ... they’ll still have to wait a bit of time to use those lower rates.

“But it provides confidence that there’s light at the end of the tunnel.”

Jenny Ling is a news reporter and features writer for the Northern Advocate. She has a special interest in covering roading, lifestyle, business, and animal welfare issues.

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