National is the party most trusted to solve inflation, with the cost of living now the top issue facing New Zealanders, according to a new poll.
The latest Ipsos New Zealand Issues Monitor research shows National is perceived as the party most capable of handling issues Kiwis are most concerned about, with support for Labour dropping.
In October last year, 37 percent of New Zealanders believed Labour was the most capable to manage inflation and the cost of living, according to Ipsos. In May, it dropped to 29 percent compared to National on 39 percent, the research showed.
More than half of New Zealanders - 56 percent - rated inflation as a top issue. Housing decreased from 51 percent in February to 37 percent in May.
In third place was health, with 29 percent rating it as a top concern. Petrol prices followed at 28 percent.
Of those issues, health was the only area that Labour was seen as most capable of managing - with National preferred for inflation, housing and petrol prices.
It's a similar situation across the ditch. The cost of living is ranked as Australia's most important issue at 52 percent followed by health (39 pct), housing (34 pct) and the economy (33 pct).
The cost of living is currently a major challenge for Governments around the world, with inflation showing few signs of slowing down - in part due to the war in Ukraine and the economic fallout from COVID-19. New Zealand's Reserve Bank has hiked interest rates to try and tackle inflation.
Analysis shows New Zealanders have on average spent an extra $4000-$5000 in the past 12 months on basics including food, rent and fuel.
The Government has unveiled several measures to try and cushion the blow, including a one-off $350 payment for about 2.1 million New Zealanders who earn less than $70,000 per year.
According to the latest consumer price index, New Zealand's annual inflation was at 6.9 percent.
Stats NZ data shows food prices have grown year on year by 6.6 percent.
National is now chipping away at Labour's pandemic popularity. As well as the Ipsos results, Newshub-Reid Research polling last month found the cost of living crisis had cost the Government dearly - with Labour suffering a dramatic drop of 6.1 points to 38 percent. It was the party's first time in the 30s since Jacinda Ardern became Prime Minister in 2017.
The poll showed National ahead on 40 percent.
Those results similarly aligned with a TVNZ poll last week, which showed National on 39 percent and Labour on 35 percent.
"It has been a really difficult period for New Zealand and then, of course, by default that makes it a difficult period to govern through," Ardern said in response to May's Newshub poll.
"There will be, from time to time, tough decisions that need to be made and if that means that we take a bit of a hit in the numbers… that's a price we're willing to pay."
The Green Party was seen as the most capable of managing climate change and environmental pollution, while Te Pāti Māori was favoured to tackle issues facing Māori, the Ipsos research showed.
