The cost of living rose the most for beneficiary households in the March 2019 quarter, Stats NZ said today.
Beneficiaries’ cost of living rose 0.6 percent, compared with 0.1 percent for all households.
Beneficiaries were hit hardest by the excise tax increase for tobacco products that took effect on 1 January.
“One cigarette cost about $1.50 in the March 2019 quarter, up from about 54 cents a decade ago, partly a result of regular excise tax increases over the past 10 years,” consumer prices manager Gael Price said.
“Cigarettes and tobacco make up about 4.1 percent of all spending for beneficiaries, compared with 2.5 percent for all households.
“Māori households were also affected by the cigarette excise tax increase, as cigarettes and tobacco make up about 4.8 percent of their spending.
“Therefore, price changes for tobacco products have more of an impact on beneficiaries and Māori households than other households.”
| Household group | Percentage |
| Expenditure quintile 1 (low) | 3 |
| Superannuitant | 1.3 |
| All households | 2.5 |
| Beneficiary | 4.1 |
| Māori | 4.8 |
| Expenditure quintile 5 (high) | 1.2 |
“Ministry of Health data shows about 1 in 7 adults in the general population are smokers, but this figure is about 1 in 3 for Māori,” Ms Price said.
NZ Health Survey provides more information on adult smokers in New Zealand.
Prices fall for highest spending households
The cost of living fell 0.2 percent in the March 2019 quarter for the highest-spending households, compared with a 0.1 percent increase for all households. The quarterly fall was mostly due to falling prices for international airfares and petrol.
“International airfares typically fall in March quarters, after rising in the build up to the summer holidays,” Ms Price said.
“For the highest-spending households, international airfares make up 2.8 percent of their spending, compared with 1.5 percent for all households.”
Petrol prices fell 6.9 percent in the March 2019 quarter, contributing to more modest inflation for most groups.
Consumers price index: March 2019 quarter has more information.
Annual increase in cost of living also highest for beneficiaries
Beneficiary households had the highest annual price increase among the household types measured. These households faced an annual increase of 1.8 percent, compared with 1.4 percent for all households. The lowest annual price increase (1.1 percent) was experienced by highest-spending households.
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