Prime Minister Jacinda Ardern claims NZ consumers are being fleeced by petrol prices. (Video first published in October 2018)

Credit and debit card spending in the September 2018 quarter rose at its fastest pace in seven and a half years.

But it's not consumer confidence behind the 2.3 per cent rise.

Instead, the rise seems to have been driven by an increase in government transfers to poorer households, and rising petrol prices.

Stats NZ observed increased grocery and liquor spending, as well as spending on fuel.

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Stats NZ's retail statistics manager Sue Chapman said spending rose in all six retail industries in the latest quarter.

The largest rise came from the consumables industry (grocery and liquor retailing), up $140 million (2.4 per cent).

The second largest rise came from the fuel industry, up $65m (3.4 per cent).

GEORGE HEARD/STUFF Fuel prices are driving up retail card spending.

"The fuel industry rise coincided with rising petrol prices," Chapman said.



"Petrol prices rose to record levels, up more than 15 cents a litre by the end of September and more in Auckland after the regional fuel tax was introduced."

In total, retail card spending was $16 billion in the September quarter, up $773 million (5.2 percent) from the September 2017 quarter.

ASB senior economist Mark Smith said the government's Families Package was likely to be the key support for consumer spending.

"Wider consumer spending faces a number of headwinds, but so far weaker consumer confidence has yet to dampen consumer spending appetites," Smith said.

"If household and business optimism over the economic outlook translates into weaker growth momentum the Official Cash Rate (OCR) will likely be cut, but so far, so good.

He said, however, that the weaker New Zealand dollar and high oil prices were likely to crimp household discretionary expenditures and wider consumer spending.