Inflation Is Now The Biggest Issue Facing New Zealanders And Housing Hasn’t Gone Away.

 Inflation / cost of living has increased significantly as an issue facing New Zealanders in the latest Ipsos New Zealand Issues Monitor, overtaking housing to take the top spot for the first time since tracking began in 2018.

Inflation / cost of living (53%) and housing (51%) are by far the biggest issues facing the country with almost twice as many concerned New Zealanders when compared to the other top-5 issues: healthcare (27%), petrol prices / fuel (25%) and the economy (24%).

In addition, New Zealanders’ ratings of the Government’s performance has declined since peaking at an average of 7.6 during New Zealand’s first major lockdown in May 2020 to 5.7 in February ‘22. Ratings have now dropped to pre-COVID-19 levels.

In 2018, Ipsos New Zealand started tracking the key issues facing New Zealand. In this wave of the Ipsos New Zealand Issues Monitor, we asked 1,004 New Zealanders to select from a list of 20, the three most important issues facing the country and to rate the ability of the country’s political parties to best manage these issues.

Key findings include:

• The top-5 issues facing New Zealanders in February 2022 are inflation / cost of living (53%), closely followed by housing / price of housing (51%), followed by healthcare / hospitals (27%), petrol prices (25%) and the economy (24%).
• Petrol prices / fuel (25%) has jumped to #4 in this measure. This is the second time since 2018 this issue has increased in prominence. Previously, it had increased briefly in Oct ‘18 after the regional fuel tax announcement.
• Increasing prominence of Inflation/ cost of living and petrol prices / fuel have led to a decline in other key issues such as healthcare (27% cf. 35% in Oct ’21), poverty/inequality (20% cf. 26% in Oct ’21), crime / law and order (19% cf. 24% in Oct ’21) and climate change (16% cf. 22% in Oct ’21).
• Concerns for unemployment (5%) have declined over time and have reached the lowest level after a temporary significant increase during the first wave of the COVID-19 lockdowns in 2020. The economy followed a similar pattern, but it has stabilised in the last 12 months at a level higher than the pre COVID-19 period (24%).
• Ratings of Government performance continued to decline this measure after reaching all time high levels during the early stages of the pandemic in 2020. Performance ratings have now dropped to pre-COVID-19 levels.
• In June 2021, the Labour Party was seen by most New Zealanders as the party most capable to manage 19 out of the 20 issues facing New Zealanders (with Māori Party seen as most capable for managing issues facing Māori). However, this measure, the National Party is seen by more New Zealanders than any other party to be most capable of handling 7 of the 20 issues, including 4 of the top-5 (these include inflation / cost of living, housing / price of housing, petrol prices and the economy.

Carin Hercock, Managing Director, Ipsos New Zealand, said: “Our very high inflation rates are a significant concern to New Zealanders. This is the kind of issue that has an impact on people’s everyday lives. Even though we are seeing a strong economy, with strong wage growth and record low unemployment, when inflation is high, people with already low discretionary income feel it hardest. Increased concern around fuel prices is a clear example of that and respondents also noted high prices for food and groceries while concerns about housing haven’t gone away.”

Amanda Dudding, Research Director, Public Affairs, Ipsos New Zealand, added: “Labour’s handling of the first wave of COVID had positive impacts on their performance ratings. This perception seems to have caused a halo effect that meant in June last year they were perceived as the party that could best manage almost all of the issues facing New Zealanders. This measure we’ve seen a change in perceptions, with National now seen as best placed to handle the top two issues of cost of living and housing.”

About the Ipsos New Zealand Issues Monitor

The Ipsos New Zealand Issues Monitor provides all respondents with the opportunity to say what they think are the three most important issues facing New Zealand at the current time. Additionally, people are able to have their say about which political parties they think are most capable of managing the most significant issues facing our society. They are also asked to rate the government on its performance over the previous six months. This survey is run approximately 3–4 times per year.

The first survey of 2022 and sixteenth overall was carried out between 4th and 11th February 2022 and was completed by 1,004 New Zealanders aged 18 and older.

Sample surveys and polls may be subject to sources of error, including, but not limited to coverage error, and measurement error. The precision of the online surveys conducted is measured using a Bayesian Credibility Interval. Here, the New Zealand results have a credibility interval of +/-3.5 percentage points. For more information on the Ipsos use of credibility intervals, please go to: https://www.ipsos.com/sites/default/files/2017-03/IpsosPA_CredibilityIntervals.pdf

This study did not have any external sponsors or partners. It was initiated and run by Ipsos, because we are curious about the world we live in and how citizens around the globe think and feel about their world.

About Ipsos

Ipsos is the third largest market research company in the world, present in 90 markets and employing more than 18,000 people. Our research professionals, analysts and scientists have built unique multi-specialist capabilities that provide powerful insights into the actions, opinions and motivations of citizens, consumers, patients, customers or employees. Our 75 business solutions are based on primary data coming from our surveys, social media monitoring, and qualitative or observational techniques.

“Game Changers” – our tagline – summarises our ambition to help our 5,000 clients navigate more easily our deeply changing world.

Founded in France in 1975, Ipsos is listed on the Euronext Paris since 1st July 1999. The company is part of the SBF 120 and the Mid-60 index and is eligible for the Deferred Settlement Service (SRD).

ISIN code FR0000073298, Reuters ISOS.PA, Bloomberg IPS:FP. www.ipsos.com

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