The cost of living for the average New Zealand household increased 3.2 percent in the 12 months to the June 2026 quarter, according to figures released by Stats NZ today.
The 3.2 percent increase, measured by the household living-costs price indexes (HLPIs), follows a 2.1 percent increase in the 12 months to the March 2026 quarter.
“Higher petrol prices were the largest contributor to the increase in household living costs in the 12 months to the June 2026 quarter,” prices and deflators spokesperson Nicola Growden said.
Meanwhile, inflation – as measured by the consumers price index (CPI) – was 4.1 percent in the 12 months to the June 2026 quarter, following a 3.1 percent increase in the 12 months to the March 2026 quarter.
Consumers price index: June 2026 quarter has more information on consumer inflation.
| Quarter | CPI | HLPI all-households |
| Jun-20 | 1.5 | 1.1 |
| Sept-20 | 1.4 | 0.8 |
| Dec-20 | 1.4 | 0.7 |
| Mar-21 | 1.5 | 0.7 |
| Jun-21 | 3.3 | 2.5 |
| Sept-21 | 4.9 | 4 |
| Dec-21 | 5.9 | 5.2 |
| Mar-22 | 6.9 | 6.6 |
| Jun-22 | 7.3 | 7.4 |
| Sept-22 | 7.2 | 7.8 |
| Dec-22 | 7.2 | 8.2 |
| Mar-23 | 6.7 | 7.7 |
| Jun-23 | 6 | 7.2 |
| Sept-23 | 5.6 | 7.4 |
| Dec-23 | 4.7 | 7 |
| Mar-24 | 4 | 6.2 |
| Jun-24 | 3.3 | 5.4 |
| Sept-24 | 2.2 | 3.8 |
| Dec-24 | 2.2 | 3 |
| Mar-25 | 2.5 | 2.9 |
| Jun-25 | 2.7 | 2.6 |
| Sept-25 | 3 | 2.4 |
| Dec-25 | 3.1 | 2.2 |
| Mar-26 | 3.1 | 2.1 |
| Jun-26 | 4.1 | 3.2 |
Falling interest payments were the main reason the cost of living for the average household (as measured by the HLPI) remained below the overall inflation rate measured by the CPI.
“Interest payments for the average household fell more than 15 percent in the 12 months to the June 2026 quarter, while the cost of building a new home increased 2.7 percent over the same period,” Growden said.
| Quarter | CPI construction | HLPI all-households interest payments |
| Jun-20 | 2.8 | -6.8 |
| Sept-20 | 2.5 | -10.3 |
| Dec-20 | 3.3 | -11.8 |
| Mar-21 | 3.5 | -10.8 |
| Jun-21 | 7.4 | -7.8 |
| Sept-21 | 12 | -1.9 |
| Dec-21 | 15.7 | 7.8 |
| Mar-22 | 18.3 | 20.4 |
| Jun-22 | 18.3 | 31.3 |
| Sept-22 | 16.8 | 44.4 |
| Dec-22 | 14.1 | 44.9 |
| Mar-23 | 11.5 | 37.6 |
| Jun-23 | 7.8 | 28.8 |
| Sept-23 | 5 | 27.3 |
| Dec-23 | 3.6 | 31.2 |
| Mar-24 | 3.3 | 28.2 |
| Jun-24 | 3 | 26.7 |
| Sept-24 | 2.5 | 18.2 |
| Dec-24 | 2 | 7.1 |
| Mar-25 | 1.9 | 0.5 |
| Jun-25 | 0.8 | -7.7 |
| Sept-25 | 0.8 | -14.3 |
| Dec-25 | 1.2 | -17.3 |
| Mar-26 | 1 | -19.4 |
| Jun-26 | 2.7 | -15.4 |
Rising petrol prices drive the increase in household living costs
Rising petrol prices were the main driver of the increase in living costs across each household group in the 12 months to the June 2026 quarter. For the average household, petrol prices rose 27.5 percent over the period.
Higher petrol prices accounted for almost one-third of the annual increase in living costs for the average household.
The rise in petrol prices coincided with supply disruptions caused by the Middle East conflict, which began at the end of February 2026. Petrol prices increased in both March and April but fell in May and June.
“Higher petrol prices affect each household group differently,” Growden said. “The increase in petrol prices had the largest impact on lower-spending households, as petrol makes up a larger proportion of their expenditure.”
| Quarter | HLPI all-households petrol |
| Jun-20 | -13.5 |
| Sept-20 | -11.3 |
| Dec-20 | -12.3 |
| Mar-21 | -3.5 |
| Jun-21 | 16.3 |
| Sept-21 | 21.8 |
| Dec-21 | 30.5 |
| Mar-22 | 32.3 |
| Jun-22 | 32.5 |
| Sept-22 | 18.6 |
| Dec-22 | 2.3 |
| Mar-23 | -8.3 |
| Jun-23 | -15 |
| Sept-23 | 3.8 |
| Dec-23 | 11.9 |
| Mar-24 | 12.1 |
| Jun-24 | 14.6 |
| Sept-24 | -7.9 |
| Dec-24 | -9.2 |
| Mar-25 | -2.8 |
| Jun-25 | -8 |
| Sept-25 | -1.6 |
| Dec-25 | 2.2 |
| Mar-26 | 1.2 |
| Jun-26 | 27.5 |
Diesel prices also increased in the 12 months to the June 2026 quarter, accounting for nearly 10 percent of the 3.2 percent average household inflation rate.
“For New Zealand households, petrol accounts for a much larger share of household expenditure than diesel,” Growden said.
Selected price indexes: June 2026 has more information on monthly fuel prices.
