The cost of living for the average New Zealand household increased 3.0 percent in the 12 months to the September 2026 quarter, according to figures released by Stats NZ today.
The 3.0 percent increase, measured by the household living-costs price indexes (HLPIs), follows a 3.2 percent increase in the 12 months to the June 2026 quarter.
"Higher petrol prices were the main contributor to the increase in living costs across each household group in the 12 months to the September 2026 quarter," prices and deflators spokesperson Nicola Growden said.
Petrol prices rose 19.1 percent over the period, accounting for almost one-quarter of the increase in the annual average household inflation rate.
Meanwhile, inflation - as measured by the consumers price index (CPI) - was 3.7 percent in the 12 months to the September 2026 quarter, following a 4.1 percent increase in the 12 months to the June 2026 quarter.
Consumers price index: September 2026 quarter has more information on consumer inflation.
| Quarter | CPI | HLPI all households |
| Sept-20 | 1.4 | 0.8 |
| Dec-20 | 1.4 | 0.7 |
| Mar-21 | 1.5 | 0.7 |
| Jun-21 | 3.3 | 2.5 |
| Sept-21 | 4.9 | 4 |
| Dec-21 | 5.9 | 5.2 |
| Mar-22 | 6.9 | 6.6 |
| Jun-22 | 7.3 | 7.4 |
| Sept-22 | 7.2 | 7.8 |
| Dec-22 | 7.2 | 8.2 |
| Mar-23 | 6.7 | 7.7 |
| Jun-23 | 6 | 7.2 |
| Sept-23 | 5.6 | 7.4 |
| Dec-23 | 4.7 | 7 |
| Mar-24 | 4 | 6.2 |
| Jun-24 | 3.3 | 5.4 |
| Sept-24 | 2.2 | 3.8 |
| Dec-24 | 2.2 | 3 |
| Mar-25 | 2.5 | 2.9 |
| Jun-25 | 2.7 | 2.6 |
| Sept-25 | 3 | 2.4 |
| Dec-25 | 3.1 | 2.2 |
| Mar-26 | 3.1 | 2.1 |
| Jun-26 | 4.1 | 3.2 |
| Sept-26 | 3.7 | 3 |
Consistent with recent quarters, falling interest payments were the main contributor to keeping the cost of living for the average household (as measured by the HLPI) below the overall inflation rate measured by the CPI.
"Interest payments for the average household fell around 10 percent over the past year, while the cost of building a new home increased 3.2 percent over the same period," Growden said.
| Quarter | CPI construction | HLPI all-households interest payments |
| Sept-20 | 2.5 | -10.3 |
| Dec-20 | 3.3 | -11.8 |
| Mar-21 | 3.5 | -10.8 |
| Jun-21 | 7.4 | -7.8 |
| Sept-21 | 12 | -1.9 |
| Dec-21 | 15.7 | 7.8 |
| Mar-22 | 18.3 | 20.4 |
| Jun-22 | 18.3 | 31.3 |
| Sept-22 | 16.8 | 44.4 |
| Dec-22 | 14.1 | 44.9 |
| Mar-23 | 11.5 | 37.6 |
| Jun-23 | 7.8 | 28.8 |
| Sept-23 | 5 | 27.3 |
| Dec-23 | 3.6 | 31.2 |
| Mar-24 | 3.3 | 28.2 |
| Jun-24 | 3 | 26.7 |
| Sept-24 | 2.5 | 18.2 |
| Dec-24 | 2 | 7.1 |
| Mar-25 | 1.9 | 0.5 |
| Jun-25 | 0.8 | -7.7 |
| Sept-25 | 0.8 | -14.3 |
| Dec-25 | 1.2 | -17.3 |
| Mar-26 | 1 | -19.4 |
| Jun-26 | 2.7 | -15.4 |
| Sept-26 | 3.2 | -10.3 |
Electricity prices and local authority rates increase
Electricity prices (up 9.3 percent) and local authority rates (up 6.2 percent) also contributed to the increase in the annual average household inflation rate.
Higher electricity prices had the largest impact on lower-spending households. Electricity made up 7.4 percent of their expenditure, compared with 4.0 percent for the average household and 2.0 percent for higher-spending households.
Rising local authority rates had the most impact on superannuitant households, as superannuitants are more likely to own their own home.
"Local authority rates accounted for around 13 percent of the increase in living costs for superannuitant households in the 12 months to the September 2026 quarter," Growden said.
Superannuitant households experienced the highest annual inflation rate at 4.0 percent.
| | Other inflation | Petrol | Electricity | Local authority rates and payments |
| All households | 1.6824 | 0.6870 | 0.3566 | 0.2740 |
| Beneficiaries | 1.6321 | 0.7892 | 0.5184 | 0.1603 |
| Expenditure quintile 1 | 1.6510 | 0.7182 | 0.6962 | 0.5345 |
| Expenditure quintile 5 | 1.6538 | 0.4750 | 0.1811 | 0.1900 |
| Māori | 1.5719 | 0.7822 | 0.3704 | 0.1754 |
| Superannuitants | 2.3004 | 0.6919 | 0.4713 | 0.5365 |
Higher-spending households spend more on international travel
International air transport prices for the average household increased 12.5 percent in the 12 months to the September 2026 quarter. This increase was mainly driven by higher airfares to Europe and Asia.
Higher international airfares affect each household group differently. The increase in international airfares had the largest impact on higher-spending households, as international travel makes up a larger proportion of their expenditure.
For higher-spending households, international airfares contributed around 14 percent of their annual inflation rate of 2.5 percent - the lowest annual inflation rate of all household groups. Only petrol made a larger contribution to the annual increase in living costs for higher-spending households (around 19 percent).
By comparison, international airfares contributed 4.9 percent of the increase in annual living costs for the average household and 0.6 percent for lower-spending households.
