Fuel price surge continues to strain New Zealand borrowers while the RBNZ considers its upcoming decision

Rising Fuel Costs Impact New Zealand Households

According to ASB's latest Economic Weekly, escalating fuel prices are expected to put significant strain on household finances across New Zealand. The bank projects that the current surge in oil prices will increase the average family's weekly expenses by approximately $55 throughout 2026. This figure represents a nearly 50% jump compared to earlier forecasts, with the bulk of the rise attributed to fuel and transportation costs. These higher expenses are likely to affect other essential goods as well.

ASB anticipates that elevated energy prices will persist for several months, maintaining upward pressure on inflation and slowing economic growth, which may influence mortgage choices for both first-time home buyers and property investors.