New Zealanders are feeling the pinch of rising prices, according to the ANZ‑Roy Morgan survey of July 2025. Consumer confidence weakened to 94.7 in July from 98.8 in June, a reading below 100 that signals more pessimists than optimists【921432843662531†L154-L159】. At the same time, households’ inflation expectations climbed to 5.1%, the highest since March 2023【921432843662531†L154-L160】.

The survey highlighted that inflation pressures are concentrated in everyday necessities. Food prices were rising 4.2%, while insurance, electricity and council rates were also climbing rapidly【921432843662531†L166-L169】. ANZ Chief Economist Sharon Zollner warned that inflation in essentials is “crowding out discretionary spending and restraining price inflation in those items”【921432843662531†L166-L175】.

These results suggest that, despite headline inflation sitting around 2.7%, many households feel squeezed by the cost of living. Persistent inflation expectations could complicate the Reserve Bank of New Zealand’s plans to cut interest rates, while weak confidence may dampen consumer spending and economic growth in the months ahead.

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