Cost of living for the average household up 7.7% in 12 months

Monday, 1 May 2023

The cost of living leapt almost 8% in the year to March.

The cost of living for the average household increased by 7.7% in the 12 months to March, according to figures released by Stats NZ.

Each quarter, the household living-costs price indexes (HLPIs) measure how inflation affects 13 different household groups, plus an all-households group.

It is different to the consumers price index (CPI), which measures how inflation affects New Zealand as a whole.

Higher prices for interest payments, grocery food, rent, and fruit and vegetables were the main contributors to the HLPI increase for the quarter ending March.

Between March 2022 and March 2023 prices for interest payments increased 38%, rent increased 5.4%, grocery food increased 12% and fruit and vegetables increased 21%.

* Household living costs rose 5.2% in 2021, with mortgage interest included

* Inflation effect adding to post-Covid inequalities, Stats NZ data suggests

Kiwis share how they're making money stretch further in the midst of a cost of living crisis. (Video first published September 2022).

“Food prices increased by 12% for the average household, which was the main contributor for most household groups,” consumer prices manager James Mitchell said.

The 7.7% yearly increase followed an 8.2% increase in the 12 months to December 2022.

The cost of living for beneficiary households increased 6.7% in the 12 months to March 2023.

“This was due to higher prices for rent, interest payments, grocery food, such as eggs and cheese, and fruit and vegetables,” Mitchell said.

Rent makes up about a third of beneficiary household expenditure. This compares with 13% for the average household, and 5% for highest-spending households.

The cost of living for Māori households increased 7.5% and superannuitant households 7.1%, while highest-spending households’ cost of living increased 8.7% and the lowest-spending households 6.9%.

The quarterly change was all households was 1.8%, beneficiaries was 2%, Māori 1.8%, superannuitants 1.5%, highest-expenditure household group 1.6% and lowest-expenditure household group 1.9%.