Kiwis are facing rising expenses as the cost of living increased by 3.8 percent over the past year, according to figures released today by Stats NZ.

The Household Living-Costs Price Indexes (HLPIs) – which track the cost of everyday essentials for various household groups – have shown steady increases, with the latest figure reflecting ongoing financial pressures on households across the Hibiscus Coast.

The latest HLPI data revealed that rising interest payments were the single largest contributor to the overall increase, climbing by 18.2 percent over the past 12 months.

Insurance premiums also spiked by 16.4 percent, while rent rose by 4.8 percent.

These increases follow a 5.4 percent jump in the previous quarter, marking the third consecutive quarter of rising living costs for New Zealanders.

A separate measure of inflation, the Consumer Price Index (CPI), which captures overall price changes across the country, rose by 2.2 percent.

However, the CPI and HLPI differ in scope; while the CPI tracks price increases broadly, the HLPI focuses specifically on household spending, capturing the impact of costs on daily budgets.

According to Nicola Growden, Stats NZ’s Consumer Prices Manager, high mortgage interest rates are weighing heavily on households, with interest payments rising sharply since 2021.

"Mortgage interest payments remain high and continue to contribute significantly to living costs for many households," Growden said.

Various groups are affected differently.

For beneficiary households, costs rose by 3.8 percent, with rent making up a substantial 29 percent of their total spending.

Meanwhile, Māori households also saw a similar 3.9 percent rise, largely driven by higher interest payments and rent increases.

The highest increase in living costs was felt by low-income households, where the cost of living rose by 4.3 percent over the past year.

Superannuitants have seen a 3.9 percent increase in living costs, due mainly to insurance and property rates, which take up a larger share of spending for this group compared to others.

By contrast, high-income households experienced a slightly lower increase of 3.7 percent, but also felt the impact of increased interest rates and property-related expenses.