According to Stats NZ, the cost of living rose 8.2% in the December quarter compared to the same period last year.
We also found that high-value consumers were hit hardest by the recent rise in the cost of living.
Stats NZ reported last month that annual inflation for the December quarter was 7.2%, unchanged from the previous quarter.
But its cost-of-living measure is more comprehensive in that it takes into account people’s housing costs more.
* ‘Stupid’ policy to extend petrol price cuts benefits high-income earners: The Economist
* Do economists misunderstand inflation?
* Floods expected to reduce growth and feed inflation, but too early to give numbers
It’s not the actual cost of new housing that’s reflected in inflation, but people’s mortgage payments, which are rising sharply due to rising interest rates.
According to Stats NZ, the top spending households ranked in the top 20% increased their cost of living by an average of 9.4% over the year.
The 20% of households with the lowest spending saw an average cost increase of 7.1%.
The average increase in the cost of living for Māori was 8.1%, 6.9% for beneficiaries and 7.4% for pensioners.
The main explanation for this difference, according to Stats NZ, is that the highest spending households tend to spend more on interest payments than other household groups, and rising interest rates are causing a faster pace than other expenses. was rising at .
Poorer households will be disproportionately affected by rising food costs, which are rising faster than overall inflation and make up a larger proportion of the budget.
But that seems to be offset by rising rents that have lagged inflation. Rent, for example, accounts for about one-third of beneficiary costs, says Stats NZ.