The cost of living for the average New Zealand household increased 7.0 percent in the 12 months to the December 2023 quarter, according to figures released by Stats NZ today.
The 7.0 percent increase, measured by the household living-cost price indexes, follows a 7.4 percent increase in the 12 months to the September 2023 quarter.
“Inflation, as measured by the consumers price index, eased more than the cost-of-living over 2023. This is because our cost-of-living measure includes different ongoing costs that aren’t included in the CPI, such as interest payments, which have increased by 31 percent for the average household over the past 12 months,” consumer prices manager James Mitchell said.
| Quarter | “Interest payments |
| Dec-19 | HLPI all-households” |
| Mar-20 | -7.3 |
| Jun-20 | -6 |
| Sep-20 | -6.8 |
| Dec-20 | -10.3 |
| Mar-21 | -11.8 |
| Jun-21 | -10.8 |
| Sep-21 | -7.8 |
| Dec-21 | -1.9 |
| Mar-22 | 7.8 |
| Jun-22 | 20.4 |
| Sep-22 | 31.3 |
| Dec-22 | 44.4 |
| Mar-23 | 44.9 |
| Jun-23 | 37.6 |
| Sep-23 | 28.8 |
| Dec-23 | 27.3 |
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.
“For each of the household groups, the cost-of-living increase was above 6 percent for the 2023 year,” Mitchell said.
“This compared to the 4.7 percent inflation we saw over the same time.”
| Quarter | CPI | HLPI all-households |
| Dec-19 | 1.9 | 1.5 |
| Mar-20 | 2.5 | 2.4 |
| Jun-20 | 1.5 | 1.1 |
| Sep-20 | 1.4 | 0.8 |
| Dec-20 | 1.4 | 0.7 |
| Mar-21 | 1.5 | 0.7 |
| Jun-21 | 3.3 | 2.5 |
| Sep-21 | 4.9 | 4 |
| Dec-21 | 5.9 | 5.2 |
| Mar-22 | 6.9 | 6.6 |
| Jun-22 | 7.3 | 7.4 |
| Sep-22 | 7.2 | 7.8 |
| Dec-22 | 7.2 | 8.2 |
| Mar-23 | 6.7 | 7.7 |
| Jun-23 | 6 | 7.2 |
| Sep-23 | 5.6 | 7.4 |
| Dec-23 | 4.7 | 7 |
“Groups with a higher proportion of spending on mortgages had interest payments as the largest annual contributor to their cost of living. For groups that paid less in interest payments, their cost of living was still being driven by food and housing costs,” Mitchell said.
One main reason for differences between the HLPIs and the CPI is that the CPI measures housing as the cost of constructing a new home, whereas the HLPIs measures mortgage interest payments.
Inflation for selected groups measured by the HLPIs
Inflation experienced in the 12 months to the December 2023 quarter:
- average household was 7.0 percent
- beneficiaries was 6.2 percent
- Māori was 7.1 percent
- superannuitants was 6.1 percent
- highest-spending households was 7.3 percent
- lowest-spending households was 6.6 percent.
Average household was 7.0 percent
The cost of living for the average household increased 7.0 percent in the 12 months to the December 2023 quarter. This follows a 7.4 percent increase in the 12 months to the September 2023 quarter.
In the 12 months to the December 2023 quarter, prices in order of their contribution to the overall movement for:
- interest payments increased 31.2 percent
- private transport supplies and services (such as petrol) increased 9.0 percent
- rent increased 5.1 percent.
Beneficiaries was 6.2 percent
The cost of living for beneficiary households increased 6.2 percent in the 12 months to the December 2023 quarter. This follows a 6.7 percent increase in the 12 months to the September 2023 quarter.
In the 12 months to the December 2023 quarter, prices in order of their contribution to the overall movement for:
- rent increased 5.2 percent
- interest payments increased 30.1 percent
- cigarettes and tobacco increased 11.3 percent.
Māori was 7.1 percent
The cost of living for Māori households increased 7.1 percent in the 12 months to the December 2023 quarter. This follows an increase of 7.4 percent in the 12 months to the September 2023 quarter.
In the 12 months to the December 2023 quarter, prices in order of their contribution to the overall movement for:
- interest payments increased 31.4 percent
- rent increased 5.2 percent
- private transport supplies and services (such as petrol) increased 9.1 percent.
Superannuitants was 6.1 percent
The cost of living for superannuitant households increased 6.1 percent in the 12 months to the December 2023 quarter. This follows an increase of 6.7 percent in the 12 months to the September 2023 quarter.
In the 12 months to the December 2023 quarter, prices in order of their contribution to the overall movement for:
- insurance increased 17.4 percent
- property rates and related services increased 9.7 percent
- private transport supplies and services (such as petrol) increased 8.9 percent.
Highest-spending households was 7.3 percent
Highest-spending households’ cost of living increased 7.3 percent in the 12 months to the December 2023 quarter. This follows a 7.7 percent increase in the 12 months to the September 2023 quarter.
In the 12 months to the December 2023 quarter, prices in order of their contribution to the overall movement for:
- interest payments increased 31.1 percent
- private transport supplies and services (such as petrol) increased 8.7 percent
- insurance increased 14.3 percent.
Lowest-spending households was 6.6 percent
The cost of living for lowest-spending households increased 6.6 percent in the 12 months to the December 2023 quarter. This follows an increase of 7.2 percent in the 12 months to the September 2023 quarter.
In the 12 months to the December 2023 quarter, prices in order of their contribution to the overall movement for:
- rent increased 5.3 percent
- property rates and related services increased 9.7 percent
- insurance increased 17.4 percent.
