Dunedin Budget Advisory Service has seen an increase in demand for its services on the back of a rise in the cost of living.
Yesterday, executive officer Andrew Henderson said the service, which provided free and confidential support to anybody in the greater Dunedin area, conducted 173 interviews in November and 195 in December last year.
Data released by Stats NZ yesterday showed the largest annual increase in food prices in 32 years. Food prices were 11.3% higher in December 2022 than in December 2021. Grocery food was the largest contributor, followed by fruit and vegetables.
Mr Henderson said people should refrain from using credit facilities during tough times. It was also better to stay away from loans that might create problems in the future.
"If you can’t afford an item, then do not buy it."
He advised those struggling to manage their budget to buy only in-season fruit and vegetables while frozen food was also a cheaper option than fresh.
Increasing prices for cheddar cheese, barn or cage-raised eggs and potato chips were the largest drivers within grocery food, Stats NZ consumer prices manager James Mitchell said.
"The items within this group that influenced this movement the most were kiwifruit, potatoes, and tomatoes."
Monthly food prices rose 1.1% in December 2022 compared with November 2022.
After adjusting for seasonal effects, they were up 1.1%.
Fruit and vegetables were the largest contributor to the monthly movement.
Stats NZ data also showed the household savings increased 31.1% to $2.2billion in the September 2022 quarter.
Household net disposable income is the amount of money a household has once all income such as wages, interest, child support and outgoings such as taxes have been accounted for.
"Increases in incomes have meant that household savings increased during the September quarter, despite price rises and higher interest rates contributing to higher household spending," Stats NZ national accounts institutional sector insights senior manager Paul Pascoe said.
Household net disposable income rose 2.5% to $55.9billion.
