The average New Zealand household’s cost of living rose by 3% in the year leading up to December 2024, following a 3.8% increase the previous year, as reported by Stats NZ on Monday. The household living-costs price indexes (HLPIs) reveal that inflation peaked at 8.2% in the year to December 2022. In contrast, the consumer price index (CPI) showed a 2.2% increase for New Zealand overall in the year to December 2024, matching the previous year’s level. The highest recent CPI was 7.3% in the year to June 2022, as per Stats NZ data cited by Xinhua news agency.
In the three years since December 2021, interest payments rose sharply compared to the CPI and HLPI all-groups, with Stats NZ highlighting that HLPIs cover interest payments, while the CPI accounts for new home building costs and influences monetary policy. Stats NZ’s spokesperson Nicola Growden emphasized that mortgage interest payments remain a significant factor in living expenses for many households.
Growden stated that mortgage interest payment inflation, while still high, is slowing compared to peaks in 2022. Interest payments rose by 7.1% in the year to December 2024, and building a new home cost 2% more in that period. Other factors raising living costs for households include property rates, insurance, and rent.
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