Households told cut back despite boost in Budget
By Simon Collins
4:00 AM Tuesday Jun 1, 2010

Families are being advised to start planting vegetables, take in boarders and switch to cheaper power companies to cope with a raft of price increases.

Telecom is lifting phone rentals today by an average of 1.9 per cent, and off-peak calling charges for some fixed-line plans by 26 per cent.

The Treasury forecasts that overall consumer price inflation will peak at 5.9 per cent next March, the highest for 20 years, thanks to higher GST, tobacco taxes, ACC levies, petrol tax and the new emissions trading scheme, as well as "normal" underlying inflation.

Mangere budget adviser Darryl Evans said he was also seeing residential rent increases of $30 to $60 a week as landlords sold out because of the Budget crackdown on tax-avoiding property companies, leaving a shortage of homes to rent.

More here.