Synopsis
The average living costs for households in New Zealand rose by 3 percent in the year leading to December 2024, reflecting ongoing economic pressures. This increase follows a prior rise of 3.8 percent, indicating persistent inflationary trends affecting mortgage interest payments and other essential expenses.Key Takeaways
- Average household costs in New Zealand rose by 3%.
- Previous increase was 3.8% in September 2024.
- Highest recorded HLPIs increase was 8.2%.
- CPI inflation rate is 2.2%.
- Interest payments surged 104% since December 2021.
Wellington, Feb 3 (NationPress) The average household in New Zealand experienced a 3 percent increase in living costs over the 12-month period leading to the December 2024 quarter. This follows a 3.8 percent rise in the year ending September 2024, as reported by the statistics agency Stats NZ on Monday.
Utilizing the household living-costs price indexes (HLPIs), which illustrate the impact of inflation on various household segments, it was noted that the highest increase recorded was 8.2 percent for the year ending December 2022, according to Xinhua news agency citing Stats NZ.
In contrast, the inflation rate as indicated by the consumer price index (CPI), which reflects how inflation influences New Zealand as a whole, stood at 2.2 percent for the 12 months up to December 2024. This mirrored the increase recorded in the year to September 2024, with the CPI peak at 7.3 percent noted for the year ending June 2022.
Over the past three years since December 2021, interest payments indicated by the HLPIs have surged by 104 percent, while the CPI saw a 14.7 percent rise and the HLPI all-groups index increased by 19.3 percent, according to Stats NZ. It was highlighted that HLPIs account for interest payments, whereas the CPI includes the costs associated with constructing a new dwelling and affects monetary policy.
“For numerous households, the elevated interest payments on mortgages continue to significantly impact living expenses,” stated Nicola Growden, spokesperson for Stats NZ prices and deflators.
“Although still substantial, we have observed that inflation related to mortgage interest payments has gradually decreased from the peaks it reached in 2022,” Growden remarked, noting that interest payments rose by 7.1 percent in the year ending December 2024, while the cost of building new homes saw a 2 percent increase during the same timeframe.
Additional factors contributing to the heightened living costs for numerous household categories included property rates, insurance, and rent, she added.
