Majority of Kiwis planning to cut costs this Christmas as inflation bites

Christmas is just over a month away and whether you love it or hate it, the one thing everyone will feel is inflation. 

A Trade Me survey has found more than half of respondents are planning to cut costs this Christmas.

Christmas makes some feel very excited, but for others it's overrated.

"There's no money in New Zealand now so why celebrate Christmas? Everyone's broke," one Kiwi said.

With the increasing cost of living, people are already feeling the pinch and that's before they've paid for Christmas.  

An annual Trade Me survey found 55 percent of people were planning to cut costs for the festive season.

"The two things they were cutting back on was travel and presents," Trade Me spokesperson Millie Silvester said.

According to the survey, people are planning to spend less.

"Kiwis are looking at ways to get more bang for their buck. We found that Kiwis are opting for more second-hand presents this year than they have in previous years," Silvester said.

As inflation increases people's disposable income decreases. More than half the people who said they were buying second-hand were because of the rising cost of living. 

It's an issue Citizens Advice Bureau said will be exacerbated by Christmas. 

"Rent is a huge factor in why people are struggling and that's why we see over 2000 people come to us in the last six months accessing foodbanks," Citizens Advice Bureau deputy chief executive Andrew Hubbard said.

That's a 25 percent increase in people seeking help.

"We're worried about the choices people are making… Because they're cutting costs on things most people see as essential," Hubbard said.

Christmas won't make life cheaper, but you can. 

"Think about alternatives for putting a focus on presents, if we've learnt anything over the last three years with COVID is spending time with each other, being close to your family is important," Hubbard said.

Your presence may be the best present.