It says it is seeing families and communities facing increasingly uncertain futures as services and projects shut down, people lose their jobs and harsh policies erode their dignity and sense of worth.
Families are struggling to feed their children due to gaps in social services, the Church claims.
It is urging the Welsh government to take action to tackle the issue.
Leaders claim more and more churches are responding to the poverty on their doorsteps by setting up services to help people in need such, as foodbanks, credit unions, night shelters and job clubs.
Revd Jonathan Durley, community development officer for Llandaff Diocese, said the Church had a responsibility to ensure those in power were fully aware of the extent of the poverty it was seeing.
He said: "Social need changes on a daily basis initiated by the impact of closures of projects and services, redundancy and subsequent unemployment, which to illustrate from some of our experiences, may impact on families who may not be able to feed their children before and after school due to loss of income and available finance, even for essential such as food.
"We have a prophetic responsibility to ensure those who hold political and statutory power in our communities are able to hear the voice of those we walk with. We need to ensure such power holders remain informed of the changes we see and the gaps in the services we witness."
Welsh ministers say they are committed to tackling poverty.