Households across the country continue to feel the pressure of rising living costs, with new figures from Stats NZ showing a 3.0 percent increase in the 12 months to December 2024.

This follows a 3.8 percent rise in the September 2024 quarter, highlighting persistent financial strain on families.

The Household Living-Costs Price Indexes (HLPIs), which measure inflation's impact on different household groups, indicate that key contributors to the increase include insurance, property rates, and rent.

Meanwhile, consumer inflation, measured by the Consumer Price Index (CPI), rose 2.2 percent in the same period.

"For many households, interest payments on mortgages remain high and continue to contribute significantly to living costs," said Stats NZ prices and deflators spokesperson Nicola Growden.

Interest payments have surged 104 percent since December 2021.

However, the pace of increase has slowed, with a 7.1 percent rise in the past year.

Other expenses, such as building new homes, climbed 2.0 percent.

Superannuitants on the Hibiscus Coast may feel the strain more acutely, with their living costs up 3.6 percent.

Many in this group own their homes but face rising insurance and property rates, which increased 15.8 percent and 12.4 percent, respectively.

Beneficiary households saw a 3.3 percent cost increase, largely due to rent rising 4.5 percent and property rates increasing 12.1 percent.

Rent remains a significant portion of their expenses, accounting for 29 percent of their household budgets.

For the lowest-spending households, living costs rose 3.9 percent, the highest increase across all groups.

Meanwhile, the highest-spending households saw the lowest cost rise at 2.7 percent, mainly due to interest payments, insurance, and property rates.

Though inflation has cooled compared to previous years, ongoing increases in core expenses continue to challenge Coasties, particularly those on fixed incomes or renting.

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