Households Struggle with Soaring Prices for Everyday Essentials

New Zealand households have seen a significant increase in prices for everyday items over the past decade, with some products rising faster than general inflation. According to Westpac economists, the average price of two litres of milk has increased by 57 percent since 2016, from $3.27 to $5.12 this year.

Other staples like bread, butter, and cheese have also seen substantial price hikes, with butter prices rising by a staggering 157 percent over the same period. The increase in global dairy prices has been cited as a major contributor to these rises.

The Westpac analysis also highlights that some items, such as takeaway coffee and petrol, have increased significantly over the past decade. However, it's worth noting that certain 'nice-to-have' products like home furnishings and cultural services have seen much smaller price increases.