Household living costs rise 6.2% as interest payments, the cost of insurance & transport costs such as petrol climb, Statistics NZ says

The cost of living for the average New Zealand household rose 6.2% in the year to the March quarter, Statistics NZ says, as interest payments on debt surged 28%.

These figures come from Statistics NZ's household living-costs price indexes (HLPIs). Unlike the Consumers Price Index, which rose 4% in the March year, the HLPIs include interest payments.

"For many households, interest payments have made a significant contribution to living costs," Statistics NZ consumer prices manager James Mitchell says. "This reflects mortgage interest rates remaining high relative to 2021."

"Interest payments increased 28% in the 12 months to the March 2024 quarter. The cost of building a new home [which is included in the CPI] increased 3.3% in the same period."

"Other contributors to living costs for most household groups were rent, private transport supplies and services (such as petrol) and insurance," says Mitchell.

Insurance increased 17.9%, while private transport supplies and services increased 9.6%.

The 6.2% cost of living increase for the year to March is down from 7% in the December 2023 year and 8.2% in the December 2022 year. The CPI peaked at 7.3% in the June 2022 quarter.

The HLPIs measure how inflation affects 13 different household groups, plus an all-households group referred to as the average household. There's more detail from Statistics NZ below.

Cost of living for the average household increased 6.2 percent

The cost of living for the average household increased 6.2 percent in the 12 months to the March 2024 quarter. This follows a 7.0 percent increase in the 12 months to the December 2023 quarter.

The largest contributors to the increase in the cost of living for this household group were:

• interest payments increased 28.2 percent
• private transport supplies and services increased 9.6 percent
• insurance increased 17.9 percent.

Cost of living for beneficiaries increased 5.3 percent

The cost of living for beneficiary households increased 5.3 percent in the 12 months to the March 2024 quarter. This follows a 6.2 percent increase in the 12 months to the December 2023 quarter.

The largest contributors to the increase in the cost of living for this household group were:

• rent increased 5.2 percent
• interest payments increased 27.2 percent
• cigarettes and tobacco prices increased 10.2 percent.

Rent makes up 29 percent of beneficiary household expenditure. This compares with 13 percent for the average household, and 4.4 percent for highest-spending households.

Cost of living for Māori households increased 6.3 percent

The cost of living for Māori households increased 6.3 percent in the 12 months to the March 2024 quarter. This follows a 7.1 percent increase in the 12 months to the December 2023 quarter.

The largest contributors to the increase in the cost of living for this household group were:

• interest payments increased 28.4 percent
• rent increased 5.2 percent
• private transport supplies and services increased 9.6 percent.

Cost of living for superannuitant households increased 5.2 percent

The cost of living for superannuitant households increased 5.2 percent in the 12 months to the March 2024 quarter. This follows an increase of 6.1 percent in the 12 months to the December 2023 quarter.

The largest contributors to the increase in the cost of living for this household group were:

• insurance increased 20.0 percent
• property rates and related services increased 9.7 percent
• private transport supplies & services increased 9.5 percent.

Insurance makes up 6 percent of superannuitant household expenditure. This compares with 4.1 percent for the average household.

“Superannuitant households are more likely to own their own homes and not have mortgages than other household groups,” Mitchell said. “Higher prices for insurance and rates have more impact than for other household groups who are more likely to rent or have mortgages.”

Cost of living for highest-spending households increased 6.6 percent

The cost of living for highest-spending households increased 6.6 percent in the 12 months to the March 2024 quarter. This follows a 7.3 percent increase in the 12 months to the December 2023 quarter.

The largest contributors to the increase in the cost of living for this household group were:

• interest payments increased 28.3 percent
• insurance increased 16.4 percent
• private transport supplies and services increased 9.4 percent.

Cost of living for lowest-spending households increased 5.7 percent

The cost of living for lowest-spending households was 5.7 percent in the 12 months to the March 2024 quarter. This follows a 6.6 percent increase in the 12 months to the December 2023 quarter.

The largest contributors to the increase in the cost of living for this household group were:

• rent increased 5.4 percent
• insurance increased 19.9 percent
• property rates and related services increased 9.7 percent.