Tracking what every party says — 2026 General Election & beyond
← All promises
ISSUEIn progress

Cost of living

● Economy8 tracked updates
0
✦ AI Overview

The cost of living is the dominant pressure on New Zealand households heading into the 2026 election: prices for everyday essentials — food, electricity, rates, rents and petrol — have kept climbing faster than many people's incomes, and which party can credibly ease the squeeze has become the central political fight.

What's happening:

  • Annual inflation was 3.1 percent in the year to March 2026, unchanged from the previous quarter and sitting above the Reserve Bank's 1–3 percent target band — an 18-month high. Prices rose 0.9 percent in the March quarter alone.
  • Electricity was the single biggest driver, up 12.5 percent over the year, followed by council rates (up 8.8 percent) and meat and poultry (up 8.6 percent). In the March quarter, petrol (up 3.5 percent) and pharmaceuticals (up 17.7 percent, after the prescription co-payment reset on 1 February) were the largest quarterly contributors.
  • Food prices rose 4.6 percent over the year, more than double the headline target, with grocery food, meat and fresh produce among the sharpest movers. New Zealand's two-chain supermarket market remains under scrutiny from the Grocery Commissioner.
  • Power bills are forecast to rise around 8 percent going into winter 2026 on top of a similar rise the year before, with lines charges accounting for much of the increase. At the same time, the four big "gentailers" (Meridian, Mercury, Genesis and Contact) reported a combined operating profit near $1.86 billion for the half-year to December — up roughly 44 percent — prompting the Electricity Authority to formally ask retailers to explain their increases.

Where the parties stand:

  • National (Finance Minister Nicola Willis) frames relief through earlier income tax bracket adjustments and targeted childcare help — FamilyBoost was lifted from 25 to 40 percent of fees with eligibility extended to households earning up to about $229,000. Willis has called the latest inflation "higher than we'd like to see" but argues long-term stability beats short-term "sugar hits."
  • Labour (leader Chris Hipkins, finance spokesperson Barbara Edmonds) argues the squeeze worsened on the government's watch and has campaigned on direct relief, including a capital gains tax to fund free GP visits. Edmonds said Budget 2026 "misses the mark for working whānau," noting the best many families get is a few dollars a week.
  • Te Pāti Māori backs removing GST from food as immediate grocery relief.
  • NZ First (Winston Peters) has pushed to break up the big four energy companies to lower power prices.
  • ACT (David Seymour) has characterised Budget 2026's restraint as "tough love," favouring spending discipline over new cost-of-living spending.

What to watch:

  • The Reserve Bank's next moves: Governor Anna Breman has signalled it will not be "rushed" on the Official Cash Rate, so mortgage and borrowing relief may come slowly.
  • Winter power bills and the Electricity Authority's review of gentailer pricing — a politically charged test of whether profits or costs are driving increases.
  • Whether the $450 million fuel-crisis contingency set aside in Budget 2026 is triggered, and how grocery competition reforms bed in.
  • The 2026 election framing the choice as "two futures" — tax cuts and restraint versus direct relief.

_Neutrality note: party positions above are summarised and attributed to their proponents; inclusion is descriptive, not an endorsement of any claim._

This overview is summarised by AI from public sources. It may contain errors and is a guide, not the definitive record — we welcome corrections.

❓ Our Questions — you decide

Where our research raises a question the policy doesn't answer, we put it to you — these are our questions, not government policy. Your vote stays anonymous even when you sign up (we use sign-up only to send you more things to vote on that you care about), and we report aggregated results only — the country's sentiment, never how any individual voted.

Should the government prioritise direct cost-of-living relief now (like cheaper groceries or doctor visits) over longer-term tax cuts and spending restraint?
0
Given the big power companies' rising profits, should the government step in to control electricity prices?
0
Should GST be removed from food to ease the cost of living?
0
Should GST be removed at least from fresh, healthy food — to encourage healthier eating as well as easing the cost of living?
0
Should the government regulate supermarket and power-company profits to lower prices?
0
Should cost-of-living policy focus more on lifting people's ability to earn (skills, training, better-paying jobs) than on ongoing support payments?
0
💡 Our Suggestions — ideas to consider

Practical, non-partisan ideas anyone could act on to ease the squeeze — not government policy, just things worth weighing up. Vote the ones you'd back. Your vote stays anonymous even when you sign up; we report aggregated results only.

Run a "needs vs wants" budget for a month — the discipline earlier generations learned through tougher times. Write down every dollar in and out, then move whatever's left to debt or savings before it quietly disappears.
0
Trim the small recurring "incidentals". A daily ~$6 coffee is roughly $1,500 over a year; making it at home most days frees up real money without a big lifestyle hit.
0
Swap some car trips for public transport. Auckland Transport's [$50 seven-day fare cap](https://at.govt.nz/bus-train-ferry/at-hop-card/7-day-fare-cap-for-auckland-public-transport) means once you've spent $50 on AT HOP in a week, the rest of that week's bus, train and inner-harbour ferry travel is free — which can roughly halve a weekly petrol spend.
0
Cut the power bill without cutting comfort: shift heavy use (laundry, dishwasher, hot water) to off-peak, compare plans on [Powerswitch](https://www.powerswitch.org.nz), and draught-proof doors and windows before winter.
0
Shop to a list and a rough meal plan, lean on seasonal produce and specials, and check the unit price (per 100g or per litre) rather than the sticker — steady grocery habits beat one-off big shops.
0

Key milestones

2023official
Grocery Commissioner role established

After a Commerce Commission market study found New Zealand's two-chain supermarket sector was delivering excess returns, the government created a Grocery Commissioner in 2023 to monitor pricing and push for wholesale access and more competition. Food affordability became an enduring cost-of-living flashpoint.

interest.co.nz ↗
Jul 2025official
FamilyBoost expanded for childcare costs

Finance Minister Nicola Willis announced FamilyBoost childcare rebates would rise from 25 to 40 percent of weekly fees, with eligibility extended to households earning up to about $229,000. The government cast it as targeted relief for families facing high early-childhood costs.

Beehive.govt.nz ↗
Feb 2026news
Power profits draw regulator scrutiny

The Spinoff reported the four big gentailers (Meridian, Mercury, Genesis and Contact) posted a combined operating profit near $1.86 billion for the half-year to December, up roughly 44 percent, even as households braced for higher winter bills. Critics argued retail margins, not just network costs, were lifting prices; the companies pointed to lines charges and generation costs.

The Spinoff ↗
Apr 2026news
Inflation stuck at 3.1 percent

Stats NZ confirmed annual inflation held at 3.1 percent in the year to March 2026 — above the Reserve Bank's target band and an 18-month high. Electricity, council rates and meat led the annual rise; petrol and pharmaceuticals drove the quarter. Willis called it "higher than we'd like to see," while RBNZ Governor Anna Breman said the bank would not be rushed on the cash rate.

RNZ ↗
Apr 2026official
Electricity Authority demands price explanations

The Electricity Authority formally asked every retailer with more than 1 percent market share to explain their latest price increases, after Stats NZ recorded electricity up 12.5 percent over the year. The regulator said it wanted to understand whether costs or margins were driving the rises.

Electricity Authority ↗
May 2026news
Budget 2026 offers little direct relief

Finance Minister Nicola Willis delivered Budget 2026 with restraint over new household spending, setting aside a $450 million time-limited contingency for the fuel crisis but no broad cost-of-living package. ACT's David Seymour called it "tough love"; Labour's Barbara Edmonds said it "misses the mark for working whānau," noting many families gain only a few dollars a week.

1News ↗
Jun 2026
What people are saying

The mood online is frustrated and anxious: New Zealanders swap tips on cutting grocery and power bills while arguing over whether the government or the supermarkets and energy companies are to blame.

See the conversation:

Aggregated — individual posts are not cited.

Jul 2026news
Inflation hits 4.1%, highest in over two years

Annual inflation rose to 4.1 percent in the year to the June 2026 quarter, its highest level in more than two years, Stats NZ figures released on 21 July showed. Petrol, up 27.5 percent, was the biggest single driver. Finance Minister Nicola Willis attributed the rise largely to international fuel prices — describing it as a "Trump spike" — and said inflation would have been 2.9 percent, within the Reserve Bank's target band, without fuel costs; she pointed to rates caps and consenting more renewable generation as measures meant to ease household bills over time. Labour finance spokesperson Barbara Edmonds rejected that framing, saying Willis was blaming outside factors while avoiding responsibility for domestic cost pressures, including government charges she said had risen 21 percent over two years.

Nicola Willis blames 'Trump spike' for high inflation (RNZ) ↗

Sources

Do you still agree with this promise? In the live site, your vote here feeds your weekly email digest and the party scorecards on the home page.