The cost of living for the average New Zealand household increased 3.8 percent in the 12 months to the September 2024 quarter, according to figures released by Stats NZ today.
The 3.8 percent increase, measured by the household living-costs price indexes (HLPIs), follows a 5.4 percent increase in the 12 months to the June 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 September 2024 quarter, following a 3.3 percent increase in the 12 months to the June 2024 quarter. The most recent CPI high was 7.3 percent, recorded in the 12 months to the June 2022 quarter. Consumers price index has more information.
| Quarter | CPI | HLPI all households |
| Sep-19 | 1.5 | 1.3 |
| 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 |
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 September 2021, interest payments have increased 117 percent. Over the same period, the CPI increased 15.7 percent and the HLPI all-groups increased 20.3 percent.
"Mortgage interest payments remain high and continue to contribute significantly to living costs for many households," consumer prices manager Nicola Growden said.
| Quarter | CPI construction | HLPI all-households interest payments |
| Sep-19 | 2.8 | -5.7 |
| 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 |
Interest payments increased 18.2 percent in the 12 months to the September 2024 quarter. The cost of building a new home increased 2.5 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 3.8 percent
The cost of living for the average household increased 3.8 percent in the 12 months to the September 2024 quarter. This followed a 5.4 percent increase in the 12 months to the June 2024 quarter.
The largest contributors to the increase in the cost of living for this household group were:
- interest payments increased 18.2 percent
- insurance increased 16.4 percent
- rent increased 4.8 percent.
Cost of living for beneficiary households increases 3.8 percent
The cost of living for beneficiary households increased 3.8 percent in the 12 months to the September 2024 quarter. This followed a 4.5 percent increase in the 12 months to the June 2024 quarter.
The largest contributors to the increase in the cost of living for beneficiary households were:
- rent increased 4.8 percent
- cigarettes and tobacco increased 10.0 percent
- interest payments increased 17.4 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.
Cost of living for Māori households increases 3.9 percent
The cost of living for Māori households increased 3.9 percent in the 12 months to the September 2024 quarter. This followed a 5.5 percent increase in the 12 months to the June 2024 quarter.
The largest contributors to the increase in the cost of living for Māori households were:
- interest payments increased 18.1 percent
- rent increased 4.7 percent
- cigarettes and tobacco increased 10.3 percent.
Cost of living for superannuitant households increases 3.9 percent
The cost of living for superannuitant households increased 3.9 percent in the 12 months to the September 2024 quarter. This followed a 4.6 percent increase in the 12 months to the June 2024 quarter.
"Superannuitants are more likely than other household groups to own their own homes and not have a mortgage. Higher prices for house insurance and rates have more impact on superannuitants than for other household groups," Growden said.
The largest contributors to the increase in the cost of living for this household group were:
- insurance increased 18.0 percent
- property rates and related services increased 12.3 percent
- household energy increased 6.2 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 3.7 percent
The cost of living for highest-spending households increased 3.7 percent in the 12 months to the September 2024 quarter. This followed a 5.6 percent increase in the 12 months to the June 2024 quarter.
The largest contributors to the increase in the cost of living for this household group were:
- interest payments increased 18.3 percent
- insurance increased 15.2 percent
- property rates and related services increased 11.6 percent.
Cost of living for lowest-spending households increases 4.3 percent
The cost of living for lowest-spending households increased 4.3 percent in the 12 months to the September 2024 quarter. This followed a 5.0 percent increase in the 12 months to the June 2024 quarter.
The largest contributors to the increase in the cost of living for this household group were:
- property rates and related services increased 12.2 percent
- rent increased 4.9 percent
- insurance increased 17.9 percent.
