Increasing prices were widely felt across all household groups in the September 2022 quarter, Stats NZ said 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 September 2022 quarter when compared with the September 2021 quarter. All household groups faced their highest or equal-highest annual cost-of-living increase since the series began in 2008.
Inflation experienced from the September 2021 quarter to the September 2022 quarter:
- all households was 7.7 percent
- beneficiary was 6.5 percent
- Māori was 7.7 percent
- superannuitant was 6.8 percent
- highest-spending households was 8.8 percent
- lowest-spending households was 6.5 percent.
“Higher prices for housing and food were the main contributors to the increase across all the household groups,” consumer prices manager Katrina Dewbery said.
Each quarter, the household living-costs price indexes (HLPIs) measure how inflation affects 13 different household groups, plus an all-households group. The consumers price index (CPI) measures how inflation affects New Zealand as a whole.
The all-households group, or the average household, represents all private New Zealand-resident households. Lowest-spending, middle-spending, and highest-spending groups relates to expenditure quintiles 1, 3, and 5.
Household living-costs price indexes (HLPIs) – DataInfo+ has more information about the different household groups.
Annual inflation, as measured by the CPI, was 7.2 percent in the September 2022 quarter , while annual inflation for the average household as measured by the HLPIs was 7.7 percent. These two measures of inflation are typically used for different purposes. A key use of the CPI is monetary policy, while the focus of the HLPIs is to provide insight into the cost of living for different household groups.
One important difference between the two is the treatment of housing. The CPI captures the cost of building a new home, while the HLPIs capture mortgage interest payments.
How housing costs are measured in consumer price indexes at Stats NZ has more information about how housing costs are measured in the CPI and HLPIs.
In the HLPIs, interest payments increased by 39 percent for the average household in the year to September 2022. In the CPI, the cost of building a new home increased by 17 percent in the same period.
“The official cash rate, used by the Reserve Bank to control inflation, increased from 0.25 percent in September 2021 to 3.0 percent in September 2022,” Dewbery said.
“This is reflected in the HLPIs by higher costs for interest payments.”
| Quarter | Interest payments |
| Dec-19 | 1000 |
| Mar-20 | 996 |
| Jun-20 | 976 |
| Sep-20 | 914 |
| Dec-20 | 882 |
| Mar-21 | 888 |
| Jun-21 | 900 |
| Sep-21 | 897 |
| Dec-21 | 951 |
| Mar-22 | 1070 |
| Jun-22 | 1181 |
| Sep-22 | 1249 |
About 7.4 percent of expenditure for higher spending households is on interest payments. This compares with 4.7 percent for the average household and 2.0 percent for the lowest-spending households group. This means highest-spending households experience the higher interest rates more than other household groups.
Petrol prices were another contributor to the rise for most household groups, increasing by 19 percent for the average household when compared with the same quarter last year.
Lowest-spending and beneficiary households’ inflation at 6.5 percent
Annual inflation for lowest-spending households and beneficiary households was 6.5 percent in the September 2022 quarter compared with the September 2021 quarter. This is the same as their annual inflation in the June 2022 quarter.
This was influenced by higher prices for rent and petrol, as well as interest payments, grocery food, and fruit and vegetables.
About a third of the expenditure by beneficiary households is on rent. This compares with about 13 percent for the average household and about 5 percent for highest-spending households. Therefore, increases in the cost of rent impacts beneficiary households more than other household groups.
| 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 |
Māori households’ annual inflation 7.7 percent.
The cost of living for Māori households was 7.7 percent higher in September 2022 compared with September 2021, the same as the average household.
This was largely due to higher prices for interest payments, petrol, rent, and grocery food.
Within the HLPIs, Māori households are defined as where at least one member identifies as Māori within the Household Economic Survey.
Superannuitant inflation 6.8 percent.
The cost of living for superannuitant households was 6.8 percent higher in the September 2022 quarter compared with the September 2021 quarter. This compares with 7.7 percent for the average household.
Petrol, grocery food, property rates and related services, and fruit and vegetables were the main contributors to this increase.
In the September 2022 quarter, local authority rates and payments increased by 7.4 percent.
“More superannuitants tend to own their own homes, so this group is more affected by increases in council rates than households who rent,” Dewbery said.
Quarterly cost-of-living increases
Quarterly living costs rose for all household groups in the September 2022 quarter compared with the June 2022 quarter. The cost of living for the average household rose 2.1 percent when compared with the June 2022 quarter. It was 1.5 percent for beneficiary households, 1.9 percent for lowest spending households, and 2.4 percent for highest-spending households.
Rising food prices were this biggest contributor to quarterly inflation for all household groups. For the average household, food prices rose 4.1 percent.
Fruit and vegetable prices were the biggest contributor to the price rise for all household groups, followed by grocery food. Within fruit and vegetables, tomatoes, lettuce, and broccoli were the main contributors to the rise.
Higher prices for property rates and related services, airfares, rent, and interest payments were also major contributors to quarterly inflation for most household groups.
