Food and housing costs were the main drivers of inflation for all household groups, according to figures released by Stats NZ today.
The cost of living for the average household (as measured by the household living-costs price indexes) increased by 7.7 percent in the 12 months to March 2023.
“Food prices increased by 12 percent for the average household, which was the main contributor for most household groups,” consumer prices manager James Mitchell said.
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. The consumers price index (CPI) measures how inflation affects New Zealand as a whole.
Inflation experienced from March 2022 to March 2023:
- all households was 7.7 percent
- beneficiary was 6.7 percent
- Māori was 7.5 percent
- superannuitant was 7.1 percent
- highest-spending households was 8.7 percent
- lowest-spending households was 6.9 percent.
Cost of living for the average household increased 7.7 percent
The cost of living for the average household increased 7.7 percent in the 12 months to March 2023. This follows an 8.2 percent increase in the 12 months to December 2022.
Higher prices for interest payments, grocery food, rent, and fruit and vegetables were the main contributors to this increase.
Cost of living for beneficiary households increased 6.7 percent
The cost of living for beneficiary households increased 6.7 percent in the 12 months to March 2023.
“This was due to higher prices for rent, interest payments, grocery food, such as eggs and cheese, and fruit and vegetables,” Mitchell said.
Rent makes up about a third of beneficiary household expenditure. This compares with 13 percent for the average household, and 5 percent for highest-spending households.
| Household group | Housing rentals (percentage) | Interest payments (percentage) |
| Beneficiaries | 29.7 | 2.2 |
| Expenditure quantile 1 (lowest-expenditure households) | 18.2 | 2 |
| Māori | 19.1 | 5 |
| All households | 13.4 | 4.7 |
| Superannuitant | 7 | 1.2 |
| Expenditure quantile 5 (highest-expenditure households) | 4.7 | 7.4 |
Beneficiary households experienced falling transport prices in the 12 months to March 2023. Lowest-spending households also saw falling transport prices, while for Māori households transport prices were flat. All other household groups saw an annual increase in transport prices.
Petrol prices fell, while airfares increased in price. Beneficiary and lowest-spending households spend proportionally less on airfares than the average household.
Māori households’ cost of living increased 7.5 percentMāori households’ cost of living increased 7.5 percent
The cost of living for Māori households increased 7.5 percent in the 12 months to March 2023.
The main contributors to higher living costs for Māori were interest payments, rent, grocery food, and fruit and vegetables.
Between March 2022 and March 2023 prices for:
- interest payments increased 38 percent
- rent increased 5.4 percent
- grocery food increased 12 percent
- fruit and vegetables increased 21 percent.
Superannuitant cost of living increased 7.1 percent
The cost of living for superannuitant households increased 7.1 percent in the 12 months to March 2023. This compares with 7.7 percent for the average household.
Grocery food, fruit and vegetables, and airfares were the main contributors to the rise.
Superannuitant households faced lower inflation than the average household.
“Superannuitants are more likely to own their own home, and own without a mortgage, than other household groups,” Mitchell said. “They are less impacted by rising mortgage interest rates than other household groups.”
Highest-spending households’ living costs increased 8.7 percent
Highest-spending households’ cost of living increased 8.7 percent in the 12 months to March 2023. This is the highest annual increase of all the household groups.
The main contributor to this was higher interest payments. Highest-spending households spend proportionally more on interest payments than other household groups.
Proportion of household spending on interest payments:
- all households was 4.7 percent
- highest-spending households was 7.4 percent
- lowest-spending households was 2.0 percent.
Interest payments for highest-spending households increased 38 percent in the 12 months to March 2023.
Lowest-spending households’ living costs increased 6.9 percent
The cost of living for lowest-spending households was 6.9 percent in the 12 months to March 2023.
“This was influenced by higher prices for grocery food, rent, interest payments, and fruit and vegetables,” Mitchell said.
For lowest-spending households, overall food prices increased 12 percent. Grocery food prices increased 13 percent, and fruit and vegetable prices increased 21 percent.
