New Zealand household living costs up by 3 per cent

Wellington, Feb 3 (IANS/WISHAVWARTA) The cost of living for the average New Zealand household increased 3 per cent in the 12 months to the December 2024 quarter, following a 3.8 per cent increase in the 12 months to the September 2024 quarter, according to the statistics department Stats NZ on Monday.

Measured by the household living-costs price indexes (HLPIs), which show how inflation affects different household groups, the most recent high was 8.2 per cent recorded in the 12 months to the December 2022 quarter, reports Xinhua news agency, quoting Stats NZ.

In contrast, inflation measured by the consumer price index (CPI), showing how inflation affects New Zealand as a whole, was 2.2 per cent in the 12 months to the December 2024 quarter, following a same level increase in the 12 months to the September 2024 quarter, it said, adding the most recent CPI high was 7.3 per cent, recorded in the 12 months to the June 2022 quarter.

In the three years since December 2021, interest payments indicated by the HLPIs have increased 104 per cent, while the CPI increased 14.7 per cent and the HLPI all-groups increased 19.3 per cent, Stats NZ said, adding HLPIs include interest payments, while the CPI includes the cost of building a new home and impacts monetary policy.

“For many households, interest payments on mortgages remain high and continue to contribute significantly to living costs,” said Stats NZ prices and deflators spokesperson Nicola Growden.

“Though it’s still high, we have seen inflation for mortgage interest payments continue to slow from its heights in 2022,” Growden said, adding interest payments increased 7.1 per cent in the 12 months to the December 2024 quarter, while the cost of building a new home increased 2 per cent in the same period.

Other contributors to increased living costs for most household groups were property rates and related services, insurance, and rent, she said.

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