The cost of living for the average New Zealand household increased 5.4 percent in the 12 months to the June 2024 quarter, according to figures released by Stats NZ today.
The 5.4 percent increase, measured by the household living-costs price indexes (HLPIs), follows a 6.2 percent increase in the 12 months to the March 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 3.3 percent in the 12 months to the June 2024 quarter, following a 4.0 percent increase in the 12 months to the March 2024 quarter. The most recent high was 7.3 percent recorded in the 12 months to the June 2022 quarter.
| Quarter | HLPI all-households | CPI |
| Jun-19 | 1.5 | 1.7 |
| Sep-19 | 1.3 | 1.5 |
| Dec-19 | 1.5 | 1.9 |
| Mar-20 | 2.4 | 2.5 |
| Jun-20 | 1.1 | 1.5 |
| Sep-20 | 0.8 | 1.4 |
| Dec-20 | 0.7 | 1.4 |
| Mar-21 | 0.7 | 1.5 |
| Jun-21 | 2.5 | 3.3 |
| Sep-21 | 4 | 4.9 |
| Dec-21 | 5.2 | 5.9 |
| Mar-22 | 6.6 | 6.9 |
| Jun-22 | 7.4 | 7.3 |
| Sep-22 | 7.8 | 7.2 |
| Dec-22 | 8.2 | 7.2 |
| Mar-23 | 7.7 | 6.7 |
| Jun-23 | 7.2 | 6 |
| Sep-23 | 7.4 | 5.6 |
| Dec-23 | 7 | 4.7 |
| Mar-24 | 6.2 | 4 |
| Jun-24 | 5.4 | 3.3 |
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.
"Mortgage interest payments remain high, and continue to make a significant contribution to living costs for many households," consumer prices manager James Mitchell said.
| Quarter | HLPI all-households interest payments | CPI construction |
| Jun-19 | -4.3 | 3.5 |
| Sep-19 | -5.7 | 2.8 |
| Dec-19 | -7.3 | 2.4 |
| Mar-20 | -6 | 2.7 |
| Jun-20 | -6.8 | 2.8 |
| Sep-20 | -10.3 | 2.5 |
| Dec-20 | -11.8 | 3.3 |
| Mar-21 | -10.8 | 3.5 |
| Jun-21 | -7.8 | 7.4 |
| Sep-21 | -1.9 | 12 |
| Dec-21 | 7.8 | 15.7 |
| Mar-22 | 20.4 | 18.3 |
| Jun-22 | 31.3 | 18.3 |
| Sep-22 | 44.4 | 16.8 |
| Dec-22 | 44.9 | 14.1 |
| Mar-23 | 37.6 | 11.5 |
| Jun-23 | 28.8 | 7.8 |
| Sep-23 | 27.3 | 5 |
| Dec-23 | 31.2 | 3.6 |
| Mar-24 | 28.2 | 3.3 |
| Jun-24 | 26.7 | 3 |
Interest payments increased 26.7 percent in the 12 months to the June 2024 quarter. The cost of building a new home increased 3.0 percent in the same period.
Other contributors to increased living costs for most household groups were private transport supplies and services (such as petrol), insurance, and rent.
Cost of living for the average household increases 5.4 percent
The cost-of-living for the average household increased 5.4 percent in the 12 months to the June 2024 quarter. This follows a 6.2 percent increase in the 12 months to the March 2024 quarter.
The largest contributors to the increase in the cost of living for this household group were:
- interest payments increased 26.7 percent
- private transport supplies and services increased 13.0 percent
- insurance increased 18.0 percent.
Cost of living for beneficiary households increases 4.5 percent
The cost-of-living for beneficiary households increased 4.5 percent in the 12 months to the June 2024 quarter. This follows a 5.3 percent increase in the 12 months to the March 2024 quarter.
The largest contributors to the increase in the cost of living for this household group were:
- rent increased 5.1 percent
- private transport supplies and services increased 12.8 percent
- interest payments increased 25.2 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 5.5 percent
The cost-of-living for Māori households increased 5.5 percent in the 12 months to the June 2024 quarter. This follows a 6.3 percent increase in the 12 months to the March 2024 quarter.
The largest contributors to the increase in the cost of living for this household group were:
- interest payments increased 26.4 percent
- private transport supplies and services increased 13.4 percent
- rent increased 5.2 percent.
Cost of living for superannuitant households increases 4.6 percent
The cost of living for superannuitant households increased 4.6 percent in the 12 months to the June 2024 quarter. This follows a 5.2 percent increase in the 12 months to the March 2024 quarter.
The largest contributors to the increase in the cost of living for this household group were:
- insurance increased 19.8 percent
- private transport supplies & services increased 12.9 percent
- property rates & related services increased 9.7 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.
"This is the last quarter we will see the impact of rates increases that households saw in the second half of 2023," Mitchell said. "On an annual basis, these rates increases are still a significant driver of inflation for superannuitant households."
The September 2024 quarter data will show the impact of the rates increases for the 2024/25 year.
Cost of living for highest-spending households increases 5.6 percent
The cost of living for highest-spending households increased 5.6 percent in the 12 months to the June 2024 quarter. This follows a 6.6 percent increase in the 12 months to the March 2024 quarter.
The largest contributors to the increase in the cost of living for this household group were:
- interest payments increased 27.0 percent
- private transport supplies & services increased 12.9 percent
- insurance increased 16.5 percent.
Cost of living for lowest-spending households increases 5.0 percent
The cost of living for lowest-spending households increased 5.0 percent in the 12 months to the June 2024 quarter. This follows a 5.7 percent increase in the 12 months to the March 2024 quarter.
The largest contributors to the increase in the cost of living for this household group were:
- rent increased 5.3 percent
- insurance increased 19.8 percent
- private transport supplies & services increased 13.1 percent.
