The cost of living for the average New Zealand household increased 6.2 per cent in the 12 months to the March 2024 quarter, according to figures released by Stats NZ.
The 6.2 per cent increase, measured by the household living-costs price indexes (HLPIs), follows a 7.0 per cent increase in the 12 months to the December 2023 quarter.
The most recent high was 8.2 per cent recorded in the 12 months to the December 2022 quarter.
Meanwhile, inflation – as measured by the consumers price index (CPI) – was 4.0 per cent in the 12 months to the March 2024 quarter, following a 4.7 per cent increase in the 12 months to the December 2023 quarter.
The most recent high was 7.3 per cent recorded in the 12 months to the June 2022 quarter.
Each quarter, the HLPIs measure how inflation affects 13 different household groups, plus an all-households group, also referred to as the average household. In contrast, the CPI measures how inflation affects New Zealand as a whole.
The two measures of inflation are typically used for different purposes.
A key use of the CPI in New Zealand is monetary policy, while the HLPIs provide insight into the cost of living for different household groups.
The HLPIs include interest payments, while the CPI includes the cost of building a new home.
“For many households, interest payments have made a significant contribution to living costs,” says consumer prices manager James Mitchell.
“This reflects mortgage interest rates remaining high relative to 2021.”
Interest payments increased 28 per cent in the 12 months to the March 2024 quarter. The cost of building a new home increased 3.3 per cent in the same period.
Other contributors to living costs for most household groups were rent, private transport supplies and services (such as petrol) and insurance.
Cost of living for the average household increased 6.2 per cent
The cost of living for the average household increased 6.2 per cent in the 12 months to the March 2024 quarter.
This follows a 7.0 per cent increase in the 12 months to the December 2023 quarter.
The largest contributors to the increase in the cost of living for this household group were:
- interest payments increased 28.2 per cent
- private transport supplies and services increased 9.6 per cent
- insurance increased 17.9 per cent.
Cost of living for beneficiaries increased 5.3 per cent
The cost of living for beneficiary households increased 5.3 per cent in the 12 months to the March 2024 quarter.
This follows a 6.2 per cent increase in the 12 months to the December 2023 quarter.
The largest contributors to the increase in the cost of living for this household group were:
- rent increased 5.2 per cent
- interest payments increased 27.2 per cent
- cigarettes and tobacco prices increased 10.2 per cent.
Rent makes up 29 per cent of beneficiary household expenditure.
This compares with 13 per cent for the average household, and 4.4 per cent for highest-spending households.
Cost of living for Māori households increased 6.3 per cent
The cost of living for Māori households increased 6.3 per cent in the 12 months to the March 2024 quarter.
This follows a 7.1 per cent increase in the 12 months to the December 2023 quarter.
The largest contributors to the increase in the cost of living for this household group were:
- interest payments increased 28.4 per cent
- rent increased 5.2 per cent
- private transport supplies and services increased 9.6 per cent.
Cost of living for superannuitant households increased 5.2 per cent
The cost of living for superannuitant households increased 5.2 percent in the 12 months to the March 2024 quarter. This follows an increase of 6.1 percent in the 12 months to the December 2023 quarter.
The largest contributors to the increase in the cost of living for this household group were:
- insurance increased 20.0 percent
- property rates and related services increased 9.7 percent
- private transport supplies & services increased 9.5 percent.
Insurance makes up 6 per cent of superannuitant household expenditure. This compares with 4.1 per cent for the average household.
“Superannuitant households are more likely to own their own homes and not have mortgages than other household groups,” says Mitchell.
“Higher prices for insurance and rates have more impact than for other household groups who are more likely to rent or have mortgages.”
Cost of living for highest-spending households increased 6.6 per cent
The cost of living for highest-spending households increased 6.6 per cent in the 12 months to the March 2024 quarter.
This follows a 7.3 per cent increase in the 12 months to the December 2023 quarter.
The largest contributors to the increase in the cost of living for this household group were:
- interest payments increased 28.3 per cent
- insurance increased 16.4 per cent
- private transport supplies and services increased 9.4 per cent.
Cost of living for lowest-spending households increased 5.7 per cent
The cost of living for lowest-spending households was 5.7 percent in the 12 months to the March 2024 quarter.
This follows a 6.6 per cent increase in the 12 months to the December 2023 quarter.
The largest contributors to the increase in the cost of living for this household group were:
- rent increased 5.4 per cent
- insurance increased 19.9 per cent
- property rates and related services increased 9.7 per cent.
1 comment
The hardest
Posted on 29-04-2024 19:51 | By Merlin
The hardest getting hit in this Governments cuts are those on the lowest income who can least afford it meanwhile Landlords and Farmers are getting increases and tax cuts extendted support on their and delays on their emissions and the lower are getting restricted by a different criteria on how their income can increase. Unemployment is also rising with all the job losses implemented by the government.
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