The cost of living for the average New Zealand household increased by 5.4 percent in the 12 months to June 2024, according to Stats NZ.

This rise follows a 6.2 percent increase in the year to March 2024 and marks a notable change from the 8.2 percent peak in December 2022.

James Mitchell, consumer prices manager at Stats NZ, highlighted that mortgage interest payments, which surged by 26.7 percent, remain a significant contributor to the rising living costs.

"Mortgage interest payments remain high and continue to make a significant contribution to living costs for many households," Mitchell stated.

Private transport supplies and services, including petrol, saw a 13.0 percent increase, while insurance costs rose by 18.0 percent.

These factors have collectively impacted household budgets across the country.

The Household Living-Costs Price Indexes (HLPIs), which reflect the varying effects of inflation on different household groups, showed that beneficiary households experienced a 4.5 percent increase in living costs.

For Māori households, the rise was 5.5 percent, with private transport and rent being significant contributors.

Superannuitant households saw a 4.6 percent increase, driven by a 19.8 percent rise in insurance and a 9.7 percent increase in property rates and related services.

The highest-spending households faced a 5.6 percent rise, with the lowest-spending households seeing a 5.0 percent increase.

The Consumer Price Index (CPI) recorded a 3.3 percent inflation rate for the year to June 2024, a decrease from the 4.0 percent seen in the previous quarter.

The CPI and HLPIs serve different purposes; while the CPI informs monetary policy, the HLPIs offer insight into the cost of living for various household groups.

Overall, the data reflects the ongoing challenges faced by New Zealand households in managing increased living expenses.