The cost of living for the average New Zealand household increased 7.4 percent in the 12 months to the September 2023 quarter, according to figures released by Stats NZ today.
The 7.4 percent increase follows a 7.2 percent increase in the 12 months to the June 2023 quarter.
"The cost-of-living increase for the average household as measured by the household living-costs price indexes was larger in the 12 months to the September 2023 quarter than the 12 months to the June 2023 quarter," consumer prices manager James Mitchell said.
"In contrast, CPI inflation eased over the same time period. Our cost-of-living measure includes additional ongoing costs that aren't included in the CPI, such as interest rates that have increased by 27 percent for the average household over the past 12 months."
Ten of the 13 household groups, plus the average household saw a higher annual increase in the 12 months to the September 2023 quarter compared with the 12 months to the June 2023 quarter.
Each quarter, the household living-costs price indexes (HLPIs) measure how inflation affects 13 different household groups, plus an all-households group, also referred to as the average household. In contrast, the consumers price index (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 is monetary policy, while the HLPIs provide insight into the cost of living for different household groups.
"Food and housing continued to be the key drivers of inflation for all household groups," Mitchell said.
Inflation for selected groups measured by the HLPIs
Inflation experienced from the September 2022 quarter to the September 2023 quarter:
- average household was 7.4 percent
- beneficiaries was 6.7 percent
- Māori was 7.4 percent
- superannuitants was 6.7 percent
- highest-spending households was 7.7 percent
- lowest-spending households was 7.2 percent.
Average household was 7.4 percent
The cost of living for the average household increased 7.4 percent in the 12 months to the September 2023 quarter. This follows a 7.2 percent increase in the 12 months to the June 2023 quarter.
Higher prices for interest payments and grocery food were the biggest contributors to the 7.4 percent increase. Grocery food includes items such as non-perishable food, dairy products, and eggs.
Between the September 2022 quarter and the September 2023 quarter, prices in order of their contribution to the overall movement for:
- interest payments increased 27.3 percent
- grocery food increased 11.1 percent
- rent increased 5.0 percent
- insurance increased 12.9 percent
- property rates and related services increased 9.6 percent.
Beneficiaries was 6.7 percent
The cost of living for beneficiary households increased 6.7 percent in the 12 months to the September 2023 quarter. This follows a 6.5 percent increase in the 12 months to the June 2023 quarter.
Higher prices for rent, grocery food, and interest payments were the biggest contributors to the increase.
"The removal of the $5 charge on prescriptions contributed to lower prices for medical products, appliances and equipment," Mitchell said.
"While this impacted all household groups, it had the biggest impact on living costs for beneficiary households, who spend proportionally more on prescription charges than other household groups."
Between the September 2022 quarter and the September 2023 quarter, prices in order of their contribution to the overall movement for:
- rent increased 5.2 percent
- grocery food increased 11.0 percent
- interest payments increased 27.2 percent.
Māori was 7.4 percent
The cost of living for Māori households increased 7.4 percent in the 12 months to the September 2023 quarter. This follows an increase of 7.1 percent in the 12 months to the June 2023 quarter.
The main contributors to higher living costs for Māori households were food and housing.
Between the September 2022 quarter and the September 2023 quarter, prices in order of their contribution to the overall movement for:
- interest payments increased 28.2 percent
- rent increased 5.3 percent
- grocery food increased 11.3 percent.
Superannuitants was 6.7 percent
The cost of living for superannuitant households increased 6.7 percent in the 12 months to the September 2023 quarter. This follows an increase of 6.8 percent in the 12 months to the June 2023 quarter.
Grocery food, housing, and housing-related costs were the main contributors to the increase.
Between the September 2022 quarter and the September 2023 quarter, prices in order of their contribution to the overall movement for:
- grocery food increased 10.4 percent
- insurance increased 14.6 percent
- property rates and related services increased 9.7 percent
- rent increased 5.4 percent
- interest payments increased 26.7 percent.
"Superannuitants are more likely to own their own homes and not have a mortgage than other household groups. Higher prices for house insurance and rates have more impact than for other household groups," Mitchell said.
Dwelling insurance as measured by the CPI increased 21.2 percent in the 12 months to the September 2023 quarter.
Consumers price index: September 2023 quarter has more information.
Highest-spending households was 7.7 percent
Highest-spending households' cost of living increased 7.7 percent in the 12 months to the September 2023 quarter. This follows a 7.8 percent increase in the 12 months to the June 2023 quarter.
The main contributor was higher interest payments. Highest-spending households spend proportionally more on interest payments than other household groups.
| Household group | Housing rentals (percentage) | Interest payments (percentage) |
| Beneficiaries | 29.1 | 2.7 |
| Expenditure quintile 1 (lowest-expenditure households) | 17.8 | 2.5 |
| Māori | 18.5 | 6.3 |
| All households | 12.9 | 6.2 |
| Superannuitant | 6.8 | 1.5 |
| Expenditure quintile 5 (highest-expenditure households) | 4.4 | 9.6 |
Between the September 2022 quarter and the September 2023 quarter, prices in order of their contribution to the overall movement for:
- interest payments increased 27.0 percent
- grocery food increased 10.9 percent
- restaurant meals and ready-to-eat food increased 8.6 percent
- insurance increased 12.0 percent
- property rates and related services increased 9.6 percent.
Lowest-spending households was 7.2 percent
The cost of living for lowest-spending households increased 7.2 percent in the 12 months to the September 2023 quarter. This follows an increase of 6.9 percent in the 12 months to the June 2023 quarter.
The main contributors to this increase were grocery food, rent, and property rates and related services.
Between the September 2022 quarter and the September 2023 quarter, prices in order of their contribution to the overall movement for:
- grocery food increased 11.2 percent
- rent increased 5.3 percent
- property rates and related services increased 9.7 percent
- insurance increased 14.5 percent
- interest payments increased 27.8 percent.
