Cost of Living in New Zealand Continues to Outpace Wages

The cost of living in New Zealand has continued to rise, outpacing wage growth for both the public and private sectors. Statistics New Zealand data released in 2025 shows that the cost of living increased by 3%, while wages rose by only 2.4%. This trend has put significant pressure on working families, with electricity prices rising by 11.3%, gas prices increasing by 15%, and contents insurance costs rising by 9.3%.

Key Takeaways:

• The cost of living in New Zealand has increased by 3%, outpacing wage growth for both the public and private sectors.
• Electricity prices have risen by 11.3%, making it the highest annual cost rise since the late 1980s.
• Gas prices have increased by 15%, and contents insurance costs have risen by 9.3%.
• Fruit and veg prices have risen by 7.5%, and going to the GP costs 10.3% more than last year.
• Rents are still rising faster than wages, with a 2.6% increase compared to the 2.4% rise in wages.
• The Government's failure to regulate the electricity market has exacerbated the situation.
• Cuts to government investment, particularly in water infrastructure, have led to higher local authority rates bills.
• The cost of tertiary education has increased by 22.6%, leading to further difficulties for working families.
• The Government's proposed pay deals would likely make the situation worse for workers.

Statistics:

• Cost of living increase: 3%
• Wage growth: 2.4%
• Electricity price increase: 11.3%
• Gas price increase: 15%
• Contents insurance cost increase: 9.3%
• Fruit and veg price increase: 7.5%
• GP visit cost increase: 10.3%
• Rent increase: 2.6%
• Cost of tertiary education increase: 22.6%

Sources:

• Statistics New Zealand
• NZCTU Te Kauae Kaimahi
• NZCTU Economist Craig Renney