November 23rd, 2024
In the 12 months leading up to the March 2024 quarter, the cost of living for the average New Zealand household rose by 6.2%, a Stats NZ media release said today. This marked a decrease from the 7.0% increase recorded in the previous quarter, yet interest payments and transport costs continue to drive expenses upward across various household groups.
This latest increase, measured using the household living-costs price indexes (HLPIs), compares to a lower general inflation rate of 4.0%, according to the consumers price index (CPI) for the same period.
Detailed Insights on Household Expenses: James Mitchell, the consumer prices manager at Stats NZ said that, "For many households, interest payments have made a significant contribution to living costs, reflecting mortgage interest rates remaining high relative to 2021."
Interest payments surged by 28% in the year to March 2024, significantly impacting living costs. Other notable increases included costs for private transport supplies and services, such as petrol, which rose by 9.6%, and insurance costs, which escalated by 17.9%.
Different household groups experienced varied impacts:
Beneficiaries saw a 5.3% rise in living costs, with rent and tobacco prices being major factors.
Māori households faced a 6.3% increase, slightly above the average, with similar contributors to costs.
Superannuitants reported a 5.2% rise, heavily influenced by higher insurance and property rates.
The highest-spending households experienced a 6.6% increase, the most among all groups, driven by steep rises in interest payments and insurance costs.
Lowest-spending households recorded a 5.7% increase, with rent and property rates as significant contributors.
"Superannuitant households are more likely to own their own homes and not have mortgages than other household groups. Higher prices for insurance and rates have more impact than for other household groups who are more likely to rent or have mortgages," Mitchell was quoted as saying in the StatsNZ media release.
This report not only highlights the ongoing financial pressures faced by New Zealanders but also underscores the diverse impacts of inflation on different demographic groups, informing both policymakers and the public on the economic challenges ahead.