The cost of living for the average New Zealand household increased 3.0 percent in the 12 months to the December 2024 quarter, according to figures released by Stats NZ today.
The 3.0 percent increase, measured by the household living-costs price indexes (HLPIs), follows a 3.8 percent increase in the 12 months to the September 2024 quarter. The most recent high was 8.2 percent recorded in the 12 months to the December 2022 quarter.
Meanwhile, inflation - as measured by the consumers price index (CPI) - was 2.2 percent in the 12 months to the December 2024 quarter, following a 2.2 percent increase in the 12 months to the September 2024 quarter. The most recent CPI high was 7.3 percent, recorded in the 12 months to the June 2022 quarter. Consumers price index (CPI) has more information.
| Quarter | CPI | HLPI all households |
| Dec-19 | 1.9 | 1.5 |
| Mar-20 | 2.5 | 2.4 |
| Jun-20 | 1.5 | 1.1 |
| Sep-20 | 1.4 | 0.8 |
| Dec-20 | 1.4 | 0.7 |
| Mar-21 | 1.5 | 0.7 |
| Jun-21 | 3.3 | 2.5 |
| Sep-21 | 4.9 | 4 |
| Dec-21 | 5.9 | 5.2 |
| Mar-22 | 6.9 | 6.6 |
| Jun-22 | 7.3 | 7.4 |
| Sep-22 | 7.2 | 7.8 |
| Dec-22 | 7.2 | 8.2 |
| Mar-23 | 6.7 | 7.7 |
| Jun-23 | 6 | 7.2 |
| Sep-23 | 5.6 | 7.4 |
| Dec-23 | 4.7 | 7 |
| Mar-24 | 4 | 6.2 |
| Jun-24 | 3.3 | 5.4 |
| Sep-24 | 2.2 | 3.8 |
| Dec-24 | 2.2 | 3 |
Each quarter, the HLPIs measure how inflation affects 13 different household groups, plus an all-households group (an 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.
HLPIs include interest payments, while the CPI includes the cost of building a new home. In the three years since December 2021, interest payments have increased 104 percent. Over the same period, the CPI increased 14.7 percent and the HLPI all-groups increased 19.3 percent.
"For many households, interest payments on mortgages remain high and continue to contribute significantly to living costs," prices and deflators spokesperson Nicola Growden said.
"Though it's still high, we have seen inflation for mortgage interest payments continue to slow from its heights in 2022."
| Quarter | CPI construction | HLPI all-households interest payments |
| Dec-19 | 2.4 | -7.3 |
| Mar-20 | 2.7 | -6 |
| Jun-20 | 2.8 | -6.8 |
| Sep-20 | 2.5 | -10.3 |
| Dec-20 | 3.3 | -11.8 |
| Mar-21 | 3.5 | -10.8 |
| Jun-21 | 7.4 | -7.8 |
| Sep-21 | 12 | -1.9 |
| Dec-21 | 15.7 | 7.8 |
| Mar-22 | 18.3 | 20.4 |
| Jun-22 | 18.3 | 31.3 |
| Sep-22 | 16.8 | 44.4 |
| Dec-22 | 14.1 | 44.9 |
| Mar-23 | 11.5 | 37.6 |
| Jun-23 | 7.8 | 28.8 |
| Sep-23 | 5 | 27.3 |
| Dec-23 | 3.6 | 31.2 |
| Mar-24 | 3.3 | 28.2 |
| Jun-24 | 3 | 26.7 |
| Sep-24 | 2.5 | 18.2 |
| Dec-24 | 2 | 7.1 |
Interest payments increased 7.1 percent in the 12 months to the December 2024 quarter. The cost of building a new home increased 2.0 percent in the same period.
Other contributors to increased living costs for most household groups were property rates and related services, insurance, and rent.
Cost of living for the average household increases 3.0 percent
The cost of living for the average household increased 3.0 percent in the 12 months to the December 2024 quarter. This followed a 3.8 percent increase in the 12 months to the September 2024 quarter.
The largest contributors to the increase in the cost of living for this household group were:
- insurance, up 14.3 percent
- property rates and related services, up 12.0 percent
- rent, up 4.4 percent.
Cost of living for beneficiary households increases 3.3 percent
The cost of living for beneficiary households increased 3.3 percent in the 12 months to the December 2024 quarter. This followed a 3.8 percent increase in the 12 months to the September 2024 quarter.
The largest contributors to the increase in the cost of living for beneficiary households were:
- rent, up 4.5 percent
- cigarettes and tobacco, up 7.7 percent
- property rates and related services, up 12.1 percent.
Rent makes up 29 percent of beneficiary household expenditure. This compares with 13 percent for the average household, and 4.4 percent for highest-spending households.
These proportions show the differences between the household expenditure groups. Though inflation fell overall, rental inflation remained steady. So, groups with a higher proportion of spending on rent were still faced with higher inflationary pressures.
| Quarter | HLPI all-households | HLPI all-households rent |
| Dec-09 | 0.6 | 0.9 |
| Mar-10 | 1.2 | 1 |
| Jun-10 | 1.1 | 1.3 |
| Sep-10 | 1.3 | 1.5 |
| Dec-10 | 3.8 | 1.5 |
| Mar-11 | 4.5 | 1.7 |
| Jun-11 | 5.1 | 1.7 |
| Sep-11 | 4.3 | 1.8 |
| Dec-11 | 1.8 | 1.9 |
| Mar-12 | 1.5 | 2.3 |
| Jun-12 | 0.9 | 2.2 |
| Sep-12 | 0.9 | 2.3 |
| Dec-12 | 1 | 2.4 |
| Mar-13 | 0.9 | 2.2 |
| Jun-13 | 0.9 | 2.1 |
| Sep-13 | 1.6 | 2 |
| Dec-13 | 2 | 2.1 |
| Mar-14 | 1.8 | 1.9 |
| Jun-14 | 2 | 2.1 |
| Sep-14 | 1.5 | 2.2 |
| Dec-14 | 1.2 | 2 |
| Mar-15 | 0.9 | 2.2 |
| Jun-15 | 1 | 2.2 |
| Sep-15 | 0.7 | 2.2 |
| Dec-15 | 0.3 | 2.5 |
| Mar-16 | 0.2 | 2.3 |
| Jun-16 | 0.1 | 2.2 |
| Sep-16 | 0.1 | 2 |
| Dec-16 | 1 | 1.9 |
| Mar-17 | 1.9 | 2.2 |
| Jun-17 | 1.6 | 2.1 |
| Sep-17 | 1.9 | 2.2 |
| Dec-17 | 1.8 | 2.2 |
| Mar-18 | 1.7 | 2.2 |
| Jun-18 | 1.9 | 2.4 |
| Sep-18 | 2.2 | 2.3 |
| Dec-18 | 2.1 | 2.5 |
| Mar-19 | 1.3 | 2.3 |
| Jun-19 | 1.5 | 2.7 |
| Sep-19 | 1.3 | 3.1 |
| Dec-19 | 1.5 | 3.4 |
| Mar-20 | 2.4 | 4.1 |
| Jun-20 | 1.1 | 3.8 |
| Sep-20 | 0.8 | 3.5 |
| Dec-20 | 0.7 | 3.2 |
| Mar-21 | 0.7 | 3.1 |
| Jun-21 | 2.5 | 3.3 |
| Sep-21 | 4 | 3.8 |
| Dec-21 | 5.2 | 4.4 |
| Mar-22 | 6.6 | 4.4 |
| Jun-22 | 7.4 | 4.9 |
| Sep-22 | 7.8 | 5.1 |
| Dec-22 | 8.2 | 5 |
| Mar-23 | 7.7 | 5 |
| Jun-23 | 7.2 | 4.8 |
| Sep-23 | 7.4 | 5 |
| Dec-23 | 7 | 5.1 |
| Mar-24 | 6.2 | 5.1 |
| Jun-24 | 5.4 | 5.1 |
| Sep-24 | 3.8 | 4.8 |
| Dec-24 | 3 | 4.4 |
Cost of living for Māori households increases 3.1 percent
The cost of living for Māori households increased 3.1 percent in the 12 months to the December 2024 quarter. This followed a 3.9 percent increase in the 12 months to the September 2024 quarter.
The largest contributors to the increase in the cost of living for Māori households were:
- rent, up 4.4 percent
- interest payments, up 7.3 percent
- cigarettes and tobacco, up 7.8 percent.
Cost of living for superannuitant households increases 3.6 percent
The cost of living for superannuitant households increased 3.6 percent in the 12 months to the December 2024 quarter. This followed a 3.9 percent increase in the 12 months to the September 2024 quarter.
"Compared with other household groups, superannuitants are likelier to own their own homes and not have a mortgage. That also means higher prices for house insurance and rates have a bigger impact on superannuitants," Growden said.
The largest contributors to the increase in the cost of living for this household group were:
- insurance, up 15.8 percent
- property rates and related services, up 12.4 percent
- rent, up 4.5 percent.
Insurance makes up 6 percent of superannuitant household expenditure. This compares with 4.1 percent for the average household. Property rates and related services make up 7.7 percent of expenditure for superannuitant households. This compares with 4.6 percent for the average household.
Cost of living for highest-spending households increases 2.7 percent
The cost of living for highest-spending households increased 2.7 percent in the 12 months to the December 2024 quarter. This followed a 3.7 percent increase in the 12 months to the September 2024 quarter.
The largest contributors to the increase in the cost of living for this household group were:
- interest payments, up 7.1 percent
- insurance, up 13.5 percent
- property rates and related services, up 11.8 percent.
Cost of living for lowest-spending households increases 3.9 percent
The cost of living for lowest-spending households increased 3.9 percent in the 12 months to the December 2024 quarter. This followed a 4.3 percent increase in the 12 months to the September 2024 quarter.
The largest contributors to the increase in the cost of living for this household group were:
- property rates and related services, up 12.2 percent
- rent, up 4.6 percent
- insurance, up 15.5 percent.
