Cost of living: High food prices now a bigger worry than rent, consumer group says

Kiwi renters are now more concerned about paying for food than rent, a consumer group says.

“Food concerns have been steadily creeping up over the last 18 months – but this is the first time we’ve seen food worries outstrip housing,” said Gemma Rasmussen of Consumer NZ.

Food prices soared the most since 1989 in the year to February, with recent weather events pushing fruit and vegetables up 6 per cent in the last month alone.

Consumer NZ said its nationally representative research found most renters were more concerned about putting food on the table than paying for a roof over their heads.

In June 2021, food ranked as the eighth highest financial concern with Kiwis more worried about education costs, personal debt and even home maintenance outgoings than food.

“Fast forward to 2023 and the number one financial concern is mortgage payments, followed by food and then rent,” Consumer NZ added.

The organisation called on major supermarkets to end what it called “dodgy pricing practices and promotions” in the wake of cost of living woes.

“At a bare minimum, shoppers need to be able to trust the prices they see at the supermarkets, so they can make informed choices,” Rasmussen added.

“Given cost of living pressures that many households are experiencing, many people are doing their best to reduce costs, buying products they perceive to be special.

“This leaves shoppers vulnerable if the sales are not genuine.”

Overall food prices were 12 per cent higher in February 2023 than they were in February 2022, according to figures StatsNZ released yesterday.

Grocery food was the largest contributor to this movement across the full year.

Consumer said with colder months ahead, many households are bracing for higher energy costs as well as pricier food bills.

ASB senior economist Mark Smith told the Herald the North Island storms had a tangible impact on retail food prices already.

“We expect quarterly rises in food prices to push above 4 per cent, contributing at least 0.7 percentage points to quarterly CPI readings in the first half of this year.”