Household living costs increase 7.2 percent

The cost of living for the average household increased by 7.2 percent in the 12 months to June 2023, according to figures released by Stats NZ today.

"Food prices increased by 12.7 percent for the average household," consumer prices manager James Mitchell said.

"This was the main contributor to higher living costs for most household groups."

Each quarter, the household living-costs price indexes (HLPIs) measure how inflation affects 13 different household groups, plus an all-households group, also referred to as the average household. The consumers price index (CPI) measures how inflation affects New Zealand as a whole.

Inflation for selected groups measured by the HLPIs:

Inflation experienced from June 2022 to June 2023:

• average household was 7.2 percent
• beneficiaries was 6.5 percent
• Māori was 7.1 percent
• superannuitants was 6.8 percent
• highest-spending households was 7.8 percent
• lowest-spending households was 6.9 percent.

Average household was 7.2 percent

The cost of living for the average household increased 7.2 percent in the 12 months to June 2023. This follows a 7.7 percent increase in the 12 months to March 2023.

"Higher prices for interest payments and grocery food were the biggest contributors to the 7.2 percent increase," Mitchell said.

"These were partly offset by lower prices for private transport supplies and services, things that keep your vehicle running, such as petrol and diesel."

On 1 July 2023 half-price public transport fares, the cut in fuel excise duty of 25 cents a litre, and the cut in road user charges were removed. Any impact this will have on prices will come through in the September 2023 quarter.

Between June 2022 and June 2023 prices in order of their contribution to the overall movement for:

• interest payments increased 28.8 percent
• grocery food increased 13.2 percent
• private transport supplies and services decreased 9.9 percent
• rent increased 4.8 percent
• fruit and vegetables increased 21.2 percent.

Beneficiaries was 6.5 percent

The cost of living for beneficiary households increased 6.5 percent in the 12 months to June 2023.

The main contributors to higher living costs for beneficiary households were rent, grocery food, interest payments, and fruit and vegetables, partly offset by falling prices for private transport supplies and services.

Between June 2022 and June 2023 prices in order of their contribution to the overall movement for:

• rent increased 5.1 percent
• grocery food increased 13.0 percent
• private transport supplies and services decreased 11.2 percent
• interest payments increased 29.1 percent
• fruit and vegetables increased 21.9 percent.

Rent makes up about 30 percent of beneficiary household expenditure. This compares with 13 percent for the average household, and 5 percent for highest-spending households.

Māori was 7.1 percent

The cost of living for Māori households increased 7.1 percent in the 12 months to June 2023.

The main contributors to higher living costs for Māori households were interest payments, rent, and grocery food, partly offset by lower prices for private transport supplies and services.

Between June 2022 and June 2023 prices in order of their contribution to the overall movement for:

• interest payments increased 30.1 percent
• rent increased 5.1 percent
• private transport supplies and services decreased 10.3 percent
• grocery food increased 13.2 percent
• fruit and vegetables increased 22.1 percent.

Superannuitants was 6.8 percent

The cost of living for superannuitant households increased 6.8 percent in the 12 months to June 2023.

Grocery food, fruit and vegetables, insurance, and property rates and related services were the main contributors to the increase. These were partly offset by lower prices for private transport supplies and services.

Between June 2022 and June 2023 prices in order of their contribution to the overall movement for:

• grocery food increased 12.8 percent
• fruit and vegetables increased 22.0 percent
• private transport supplies and services decreased 9.3 percent
• insurance increased 10.0 percent
• property rates and related services increased 7.3 percent.

"Superannuitants are more likely to own their own homes and not have a mortgage than other household groups. Higher prices for rates and dwelling insurance have more impact than for other household groups," Mitchell said.

Highest-spending households was 7.8 percent

Highest-spending households' cost of living increased 7.8 percent in the 12 months to June 2023. This compares with 7.2 percent for the average household.

The main contributor to this was higher interest payments. Highest-spending households spend proportionally more on interest payments than other household groups.

Between June 2022 and June 2023 prices in order of their contribution to the overall movement for:

• interest payments increased 28.3 percent
• private transport supplies and services decreased 9.6 percent
• grocery food increased 13.1 percent
• passenger transport services - such as airfares - increased 24.2 percent
• restaurant meals and ready-to-eat food increased 8.8 percent.

Lowest-spending households was 6.9 percent

The cost of living for lowest-spending households was 6.9 percent in the 12 months to June 2023.

The main contributors to this increase were grocery food, rent, fruit and vegetables, and interest payments. These were partly offset by lower prices for private transport supplies and services.

Between June 2022 and June 2023 prices in order of their contribution to the overall movement for:

• grocery food increased 13.5 percent
• rent increased 5.1 percent
• private transport supplies and services decreased 9.8 percent
• fruit and vegetables increased 21.7 percent
• interest payments increased 29.8 percent.