Household living costs rise 6.2%
Household expenses continue to bite, but there is a silver lining: prices are increasing at a decreasing rate.
The cost of living for the average New Zealand household rose 6.2% in the 12 months to the March 2024 quarter, according to Stats NZ.
That compares to 7.0% in December 2023, 7.4% in September 2023 and 8.2% in December 2022, the most recent peak.
You might be surprised to learn that these household cost increases are higher than the consumer price index (CPI) – which is the inflation statistic the media commonly reports, and which has fallen for five consecutive quarters:
- December 2022 = 7.2%.
- March 2023 = 6.7%.
- June 2023 = 6.0%.
- September 2023 = 5.6%.
- December 2023 = 4.7%.
- March 2024 = 4.0%.
The reason household living costs have been rising at a faster rate than the CPI is because the former includes mortgage repayments while the latter doesn’t.
7 ways to reduce your living costs
- Refinance your mortgage to a lower-rate loan.
- Pay down high-interest debt (credit cards and personal loans).
- Delete apps that encourage overspending, like Afterpay and Laybuy.
- Build a savings fund so you can shop with cash.
- Cancel subscriptions for services you never or rarely use.
- Shop around for better deals on your power, insurance, internet and phone.
- Reduce your water and electricity usage.