Stats NZ this week said rising rent prices were the biggest contributor to the annual inflation rate and almost 20% of the 2.2% annual increase in the consumer price index (CPI) was due to rent prices.

NZ Property Investors Federation spokesman Matt Ball said rates alone made up 16% of the overall 2.2% increase.

"Don't forget that rates are a very important contributor into rent," Mr Ball said.

"It's one of the costs, one of the big costs that landlords and property investors face." Read more

For one Moerewa woman in her 70s, paying her bills and asking for help was not easy.

"Like most elderly, I don't want to feel like I'm a burden to anyone," Moana Baragwanath said.

"That's why we live in leaky houses and can pay some bills but not others," she added. Read more

Inflation has hit 7.3 percent in the June quarter, the highest increase since 1990.

What people need and who's seeking help is changing.

There's an increase in demand for food parcel services. There's been an "influx" in working class people looking for help to supplement their budgets. People are scared they'll lose their homes.

The new study, by not-for-profit Orange Sky and conducted by YouGov, came up with some grim statistics. It surveyed 1001 over 18-year olds between 21 and 27 June 2022. It found over the 12 months before the survey:

Sixty-two percent struggled financially to make ends meet at least once. Twenty-seven percent struggle at least once a month.

Sixteen percent struggle to make ends meet at least once a week.

Fourteen percent couldn't pay rent or bills and borrowed money or took out a loan.

Twelve percent missed a meal due to a lack of funds.

Four percent slept rough. Seven percent couch-surfed at friends' homes.

Forty-four percent had to change their living circumstances because of rising living costs.

Forty-four percent missed social occasions due to financial struggles.

Fifty-four percent reported increased nervousness about their financial security.

Fifteen percent had experienced homelessness before.

The survey used Stats NZ's definition for "homelessness". This includes living in transient or overcrowded housing, on a friend's couch or living on the street for a period of time.

Why - and what to do

Inflation is driven largely by rising rents and construction costs for new homes and commercial buildings, the study notes.

Petrol prices increased 32 per cent in the year to the June 2022 quarter, the largest annual increase since the June 1985 quarter.

The Government Budget 2022 sought ways to mitigate the inflationary effects.

People earning under $70,000 in the past year will receive $350 over three months to help. Petrol taxes will continue to be cut by 25c per litre until the start of February 2023.

One charity says many workers can't feed their families. Currently, 130-150 food parcels are distributed each day - up from 70-80 a day last year.

"Everything's for free. We do food parcels, cooked meals if somebody comes in and they're hungry." About 50-60 people come into the store every day.

Between rent, water rates, power, internet and the increasing price of petrol to go to work "... it's absolutely killing people.

"For them to go to work, something has to give and unfortunately it's the kai that (they) are giving (up)."

The charity is presently handing out around 10 blankets a day to families who are cold or can't afford to pay for heating.

Orange Sky offers a free mobile laundry and shower service for people experiencing homelessness.

A non-judgemental listening ear is a necessary and effective part of the service, besides clean clothes, showers and blankets, Orange Sky says.

The Sudsy Challenge

Orange Sky's 2022 Sudsy Challenge is challenging everyone to wear the same clothes for three consecutive days. The aim is to spark meaningful conversations and reduce stigmas about homelessness:

Source

• NZ Herald

Its low priority is just one of the changes Delphina Soti, General Manager of the St Vincent de Paul food Hub in Auckland is seeing.

Covid has a long tail and there are many layers of need in the community, she says.

"There's a lot of talk about things coming back to normal but in reality recovery takes a couple of years."

What is not normal is the spiralling cost of living leaving people struggling to keep their heads above water. Fixed costs come first.

"Food is becoming so expensive that it has become a discretionary item. People opt to pay for housing and amenities before food," says Soti.

She notes some families are juggling three or four jobs that don't pay as well as the jobs they had pre-Covid, observing many are industrial type jobs to pay the bills, the work is harder and takes a toll on family members.

Soti says the 'new normal' is also impacting many young Pasifika and Maori who are opting to work rather than taking up tertiary education.

They need to help pay for housing, rent, debt-servicing, food and petrol, she says.

Soti also points out Covid's 'cost' on people's mental health is "a big concern".

About a third cannot work - reasons include health or mental health issues, and very young children. Many are business owners. Many have families to support.

With money tight and mental health fragile, food banks are frantically busy, says Soti.

She says that when the pandemic began to escalate in 2020, Vinnies Auckland expanded its operation from a 200 square metre warehouse to one of 1100 square metres with a drive-through system allowing people who have already registered to come at an allocated time to pick up their food boxes.

"Hundreds of boxes are pre-packed by staff and volunteers throughout the week.

"On pick-up day, it's like a drive-through takeaway service," says Soti.

"We had to figure out a way to meet the huge demand and keep it safe, dignified and non-contact."

Vinnies works with networks, farms and food producers to procure nutritious food at cost price.

Soti says the parcels are based on larger family units, are high in nutritional value and make a significant difference to families.

Vinnies Auckland distributes around 500 food parcels a week - but peak demand this year saw 1,200 parcels flying out the door.

Source

• Supplied

As the cost of living trims how far money goes, children's charity KidsCan is supporting more schools than ever - 874 schools and 156 early childhood centres (ECEs) - with the basics their students go without at home.

There is even a growing queue for the service, with 19 schools and 107 ECEs on a wait list. Read more

Prime Minister Jacinda Ardern said Monday that while rising living costs were impacting, she wouldn't describe the situation as a crisis.

However, the Catholic Housing Trust CEO with first-hand real-life experience of hardship is pushing back on statements by the Prime Minister.

"From Monte Cecilia's perspective, we're working with hundreds of families every day who were already struggling to keep a roof over their children's heads and food in their bellies, who are now being pushed well past the line.

"If that's not a crisis, I don't know what you'd call it.

"Between rent, food, fuel and other basic necessities, families are expected somehow to find thousands of dollars extra a year to cover the rising costs.

"That's a tough blow for those of us who are doing ok, but for families who were already struggling, it's crushing."

Monte Cecilia has had to stop taking referrals earlier in the year after its waitlist grew to almost 400 families and the government restricted its ability to contract new homes from landlords.

Many New Zealanders agree with Smith.

On Tuesday a mum of five told Newshub AM she's struggling after her family's bills increased by $7000 in the past year.

One Reddit user said Ardern was "simply ignoring facts," while another called it a "poor take" given food, petrol, rent and house prices were "skyrocketing."

The cost of living has skyrocketed with Kiwis spending on average an extra $4000 to $5000 in the past 12 months on basics such as food, rent and fuel. The highest single item in the increase is fuel, with an extra $678 a year at the pump on average.

Speaking to Newshub's AM, Ardern said that despite the escalating fuel cost, she wouldn't be cutting tax on petrol.

"What we're seeing right now is the impact of Covid and the recovery and of Ukraine," Ardern said. "The increase we've seen at the pump, it's been significant. It has not come from excise [tax], it has not come from government."

AM host Ryan Bridge pushed Ardern to admit that if the government cut taxes on petrol, people could be paying half as much at the pump. However, Ardern replied: "If you remove excise, which every government has used, you basically remove your ability to maintain roads and roading projects," she said.

Bernie Smith concluded, "It doesn't matter that the cause is global because this isn't about handing out blame - what matters is what we're doing to help our most vulnerable families.

"Prime Minister Ardern has said that she expects things to improve over the course of the year and I hope she's right, I really do, but families are being forced into poverty right now.

"We can't afford to sit still and hope the situation improves - we need to act."

Sources

• Monte Cecilia Housing Trust Press Release
• NewsHub
• The Spinoff
• Otago Daily Times