By Mahvash Ikram of RNZ
Twenty years ago $1 could buy you one litre of petrol, half a block of butter and a sizeable bag of mixed lollies from the local dairy.
And if you were alive in 1969, a litre of milk, a dozen
In 2024, after two years of high inflation, peaking at just over 7% in 2022, First Up decided to find out how far a gold coin can stretch.
One man who had just paid for his groceries at a West Auckland fruit and vege shop said nothing in his trolley was that cheap.
“There is nothing in here for a dollar.”
Next door, the manager at Aussie Butcher looked a bit confused when asked what a gold coin could buy at his store.
“A bone, that’s about all.”
And at a seafood shop in Henderson a dollar would not fetch much, but at least you won’t walk away empty handed.
The shop assistant told First Up $1 could buy “a couple mussels” or “a very small piece of gurnard”.
Next stop was the local bakery. There was nothing available for $1.
The man behind the counter said the cheapest item he had was $2. “I would have to be very generous to offer you something for a dollar.”
But asking nicely paid off.
Small bread rolls were priced at six for $3 and he was happy to sell a single one for $1.
Nearby at Zeki’s Cafe, a quick scan of the food cabinet showed everything cost well above a dollar.
Economist Shamubeel Eaqub said the price of butter was an example of the effects of inflation.
“A dollar just doesn’t go as far anymore.
“If you think back to 40 years ago, a dollar would buy a block of butter; 20 years ago, you’d get half a block; 10 years ago, you’d get a quarter of a block. Now you’re going to get 15% of a block.”
The New Zealand $1 coin was introduced in 1991, and since then, it has halved in value.
“Roughly speaking, it’d be worth $2 you’d be getting twice as much stuff for your money back then than you do today,” Eaqub said.
But don’t underestimate the power of the gold coin just yet.
According to a shop assistant at Dollar Dealers, it could be exchanged for something priceless.
A shelf in one corner of the shop was lined with hundreds of DVDs, selling for $1 each. “We get customers that just come in for our DVDs on a daily basis.”
Of course, the supermarket was a great source of $1 deals. A 400g tin of tomatoes was only 92c when First Up visited.
At the pick ‘n’ mix bins, $1 got you about 37 raw almonds, or three dried apricots.
As for apples - one Granny Smith was about 75c.
And while one loose bread roll cost about $1.50, you could get lucky with a Snickers bar on special for just one gold dollar coin.
But, as Eaqub said, it was not possible to survive on $1 a day, in New Zealand, in 2024.
- RNZ
Sign up to The Daily H, a free newsletter curated by our editors and delivered straight to your inbox every weekday.