Cost of Living
Carousel · slide 1 of 4
Summary
The carousel argues that New Zealand's high cost of living is driven by dependence on imported fossil fuels, saying trade-route disruptions push up fuel, transport, food and power costs and contributed to annual inflation rising from 3.1% to 4.1% in three months. It then argues that investment in renewable energy would reduce household costs. The inflation and imported-fuel points have a substantial factual basis, but the claim that New Zealand relies on imported oil and gas is inaccurate for natural gas, and the broader claim that rising costs "all come back to fossil fuels" overstates a complex set of causes.
Imported fuel prices were a major contributor to New Zealand's recent inflation increase, and annual inflation did rise from 3.1% to 4.1%. But New Zealand does not import natural gas, and not all increases in food, electricity and other living costs can be attributed solely to fossil fuels.
Score Breakdown
Factual accuracy
Weight: 40%
Context fairness
Weight: 30%
Evidence quality
Weight: 20%
Visual/audio fairness
Weight: 10%
What the ad gets right
- +Annual CPI inflation did rise from 3.1% in the March 2026 quarter to 4.1% in the June 2026 quarter. ([Stats NZ][1])
- +Fuel prices were a major reason for the June-quarter inflation increase: Stats NZ says petrol and diesel together accounted for almost two-thirds of the 1.5% quarterly CPI rise. ([Stats NZ][2])
- +New Zealand is highly dependent on imported refined petroleum fuels. MBIE says more than 90% of New Zealand's fuel imports in 2025 came from four Asian countries and warns that overseas supply disruptions can cause shortages and higher domestic costs. ([MBIE][3])
- +The Reserve Bank has explicitly linked the 2026 rise in inflation to higher international oil prices and the direct and indirect effects of Middle East conflict on New Zealand prices. ([Reserve Bank of New Zealand][4])
- +Electricity prices also contributed to the June 2026 inflation increase, rising 4.4% in the quarter and 12.0% over the year. ([Stats NZ][2])
What the ad gets wrong or leaves out
- −The statement that New Zealand relies heavily on "oil and gas imported from overseas" is inaccurate for natural gas. MBIE says New Zealand has no facilities to import or export natural gas; domestic gas comes from New Zealand fields. ([MBIE][5])
- −The claim "It all comes back to fossil fuels" is too sweeping. Fossil-fuel prices were an important driver of the recent quarterly inflation jump, but other costs also contributed, including electricity, new housing construction and broader domestic price pressures. ([Stats NZ][2])
- −Saying trade-route disruption causes fuel, transport, food and power bills all to rise compresses several different causal relationships into one statement. Imported oil prices and shipping disruption can flow through to many prices, but individual food and electricity costs also depend on domestic production, network charges, wages, weather and other factors.
- −The rise from 3.1% to 4.1% is correctly stated, but it refers to annual inflation measured three months apart, not a 1 percentage-point increase in the overall price level within three months.
- −The final claim that investing in renewable energy "can lower your cost of living" is plausible as a policy objective but is not a guaranteed outcome. The effect would depend on the investments chosen, their costs, financing and how savings flow through to households.
Detailed Verdict
The carousel correctly identifies imported petroleum prices as a major contributor to New Zealand's recent inflation spike and accurately states the rise from 3.1% to 4.1%. However, it incorrectly suggests New Zealand imports natural gas and overstates the evidence by presenting fossil-fuel dependence as the explanation for essentially all of the listed cost pressures.
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