• Average household living costs rise 3% in Sept. year v 3.2% in June
  • Petrol main driver up 19%; mortgage rates down 10% 
  • Electricity and rates also significant
  • Living costs differ from inflation, which excludes interest rates
  • Superannuitants have biggest cost rise highest spenders the lowest

The cost of living for the average household has eased marginally as falls in mortgage rates partly offset more expensive petrol.

Stats NZ data showed costs for the average household rose 3% in the year ended September, from a 3.2% rate in the June year.

"Higher petrol prices were the main contributor to the increase in living costs across each household group in the 12 months to the September 2026 quarter," Stats NZ’s prices spokesperson Nicola Growden said.

The fuel increase had been 19% increase, accounting for about a quarter of the average household increase.

However, falls in mortgage rates over the same period provided some offset.

"Interest payments for the average household fell around 10% over the past year, while the cost of building a new home increased 3.2% over the same period."

Electricity, up 9.3%, and local body rates, up 6.2%, were other significant increases.

The household living cost numbers compared to a 3.7% rise in the consumer price index for the September, with the major difference being the CPI does not include interest rates.

Superannuitants do it toughest

The household living numbers were also calculated for various income and expenditure groups, as well as demographic sections covering beneficiaries, Maori and superannuitants.

The cost of living rise for superannuitants was put at 4% annually, with their income and spending patterns influenced by owning houses, often mortgage free, leaving them facing higher rates, but getting the bonus of lower interest rates.

"Local authority rates accounted for around 13% of the increase in living costs for superannuitant households in the 12 months to the September 2026 quarter," Growden said.

For beneficiaries, living costs rose 3% and Māori by 3.1%.

Based on income, low earning households faced a 3.4% increase but high income households were at 2.7%.

It was similar for low and high spending groups, with the latter significantly affected by higher international air fares.