Some Kiwis will spend less on Christmas gifts due to cost of living

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According to a new survey, many Kiwis are reconsidering their usual vacation plans as cost of living pressures continue to mount.

It comes as Stats NZ figures released yesterday showed annual increases in food prices hit a 14-year high.

Food prices in October were 10.1% higher than in October 2021.

About a third of people planned to spend less on Christmas gifts than they usually would or spend less on restaurant meals during the holiday season.

Meanwhile, 32% were planning a little Christmas at home. By comparison, one in five respondents said their plans would not be affected by increases in the cost of living.

The consumer survey data comes from an online survey commissioned by business software company MYOB – which surveyed 1,020 adults in late October.

A company spokesman, Jo Tozer, said New Zealand businesses should pay attention to changing trends.

“While our research suggests spending will be on par with 2021 at most levels, with the dollar not stretching as far this year – especially on essentials like food – it’s likely that many families will adjust this that their traditional festive celebrations entail,” she said.

“As a result, the end of the year could continue to be difficult for some companies who will feel this pinch more than others as discretionary spending is reassessed.”

According to the company, one in five people were also planning to shop earlier this year – with concerns over global shipping delays and stock-outs.

Around 43% plan to do most of their Christmas shopping at a mall, while just over a quarter plan to buy most of their gifts at a local business.

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