Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Rising prices for essentials hit beneficiaries the hardest

Rising prices for essentials hit beneficiaries the hardest

27 July 2017

Higher prices for housing and household utilities and food are hitting beneficiaries the hardest, while overall prices are dipping slightly for top earners, Stats NZ said today.

Beneficiaries experienced the highest inflation of all groups for the second quarter in a row, with their overall costs rising 0.3 percent in the June 2017 quarter. In contrast, the highest-earning group saw their cost of living fall 0.1 percent.

“Rising prices for the basics such as rent, electricity, and food had a greater impact on beneficiaries,” prices senior manager Jason Attewell said. “Over half their spending was on these essentials, compared with about a quarter for the highest earners.”

This data comes from the household living-costs price index (HLPIs), which are different from the overall basket of inflation measured by the CPI (see Consumers price index: June 2017 quarter). The HLPIs offer insights into how price changes affect 13 different household groups, including beneficiaries, Māori, superannuitants, and 10 other groups that have varying income and spending patterns. This differs from the CPI, which is a national average of price change that New Zealand households experience.

For more information on how the CPI works, see consumers price index – animation and infographic.

In the June 2017 quarter, higher prices for vegetables and electricity had a large effect on all groups. This was countered by lower prices for petrol.

“Items such as tomatoes and petrol are commonly purchased by households of all income and expenditure levels, and the impact of large price rises for these goods can be seen across the board,” Mr Attewell said. “In contrast, domestic airfares fell 15 percent across HLPI groups. High spenders benefitted the most from cheaper domestic airfares.”

High-tech items keep living costs low

Living costs for high-spending households rose the least in the year to June 2017, up 1.4 percent compared with 2 percent for low-spending households. High spending households spent proportionally more on high-tech items, which had price falls for the year.

Technology generally improves for items such as smartphones. This reflected as an effective price fall, as consumers receive more value for the same price. Mid to high earners and spenders have more discretionary income for high-tech items and receive the most benefit from these improvements.

For more information about these statistics:

• Visit Household Living-costs Price Indexes: June 2017 quarter

• See CSV files for download


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Back Again: Government Approves TPP11 Mandate

The Government has approved a negotiating mandate for Trans-Pacific Partnership 11 (TPP11), which will ensure New Zealand businesses remain competitive in overseas markets.

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>




Gordon Campbell: On Why Labour Isn’t Responsible For Barnaby Joyce

As a desperate Turnbull government tries to treat the Barnaby Joyce affair as a Pauline Hanson fever dream – blame it on the foreigners! We’re the victims of the dastardly New Zealand Labour Party! – our own government has chosen to further that narrative, and make itself an accomplice. More>>


Rail: Greens Back Tauranga – Hamilton – Auckland Service

The Green Party today announced that it will trial a passenger rail service between Auckland, Hamilton and Tauranga starting in 2019, when it is in government. More>>


Housing: Voluntary Rental Warrant Of Fitness For Wellington

Wellington City Council is partnering with the University of Otago, Wellington, to launch a voluntary Rental Warrant of Fitness for minimum housing standards in Wellington, Mayor Justin Lester has announced. More>>


Treaty: Agreement In Principle Signed With Moriori

“The Crown acknowledges Moriori was left virtually landless from 1870, hindering its cultural, social and economic development. The Crown also acknowledges its contribution to the myths that the people of Moriori were racially inferior and became extinct." More>>


Susan Devoy: Call For Inquiry Into State Abuse Reaches UN

Race Relations Commissioner Dame Susan Devoy is in Geneva and has asked a United Nations committee to urge the New Zealand government to initiate an inquiry into the physical and sexual abuse of children and disabled people held in state institutions. More>>


(Not National): Cross-Party Agreement On Pike River Re-Entry

The commitment was signed this afternoon by the leaders of Labour, United Future, The Maori Party, and the Green Party and, together with the earlier commitment by New Zealand First, means that there is now a Parliamentary majority behind the families’ fight for truth and justice. More>>






Featured InfoPages

Opening the Election