Wellington, October 28 The cost of living for the average New Zealand household increased 2.4 per cent in the 12 months to the September 2025 quarter, Stats NZ reported on Tuesday.
The 2.4-per cent increase, measured by the household living-costs price indexes (HLPIs), follows a 2.6-per cent increase in the 12 months to the June 2025 quarter, according to a statement of the statistics department.
The most recent high was 8.2 per cent recorded in the 12 months to the December 2022 quarter, Stats NZ said.
The 2.4-per cent rise is slightly lower than the three-per cent inflation rate measured by the Consumer Price Index (CPI) over the same period, it said, adding the difference is largely due to a 15.4-per cent drop in mortgage interest payments, which are included in the HLPIs but not the CPI.
The HLPIs measure how inflation affects 13 different household groups, while the CPI measures how inflation affects New Zealand as a whole, serving as the primary gauge for monetary policy decisions, the statement said, Xinhua news agency reported.
Mortgage interest payments decreased significantly, benefiting highest-spending households that recorded the lowest annual inflation of 0.8 per cent. By contrast, superannuitants experienced a higher inflation rate of 3.9 per cent, as most own their homes outright and have little mortgage impact, Stats NZ said.
Electricity costs surged 11.3 per cent in the 12 months to September 2025, affecting lowest-spending households the most, contributing 19 per cent to their four-per cent inflation, it said.
Rent increased 2.6 per cent in the 12 months to September 2025, having more impact on beneficiaries, since rent represents nearly 30 per cent of their household expenditure, comparing with 13.1 per cent for the average household, and 5.1 per cent for highest-spending households, it added.
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