Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Low-spending households face increased inflation

Low-spending households face increased inflation, Stats NZ says

By Rebecca Howard

Oct. 27 (BusinessDesk) - Low-spending households continued to face higher inflation than top earners in the third quarter although superannuitants were hit by rising rates and insurance costs, Stats NZ said.

Overall costs for the lowest-expenditure household group were up 0.8 percent in the September 2017 quarter, compared with the June quarter, the government statistician said. Households in the highest earning group saw their cost of living lift 0.5 percent, Stats NZ said. Superannuitants, however, experienced the highest inflation of all household groups in the September quarter, driven by rising prices for rates, and insurance. Their overall costs rose 0.9 percent, compared with a 0.6 percent rise overall for households.

“Nearly nine out of ten superannuitants own their own home, so they bear the brunt of rising home-ownership costs,” consumer prices manager Matthew Haigh said. “In September, rises in local authority rates and home insurance had the greatest impact on this group.”

On an annual basis, living costs for low-spending households rose 2.6 percent while they were up 2.3 percent for beneficiaries and 1.5 percent for the highest-expenditure household group, Stats NZ said.

Poorer households experienced a greater impact from increased prices for rents, insurance, and cigarettes and tobacco. In contrast, high-spending households experienced more benefit from decreased prices for telecommunications services, and audiovisual equipment, according to Stats NZ.

“Prices increased over the year for essential items like rents, food, and petrol, while they fell for some luxury items,” Haigh said. "Households with more discretionary income have received the most benefit from cheaper high-tech products," he added.

The agency began publishing the quarterly data in November last year to provide new insights into inflation experienced by 13 different groups including beneficiaries, Maori, pensioners and others based on their income and spending patterns.



© Scoop Media

Business Headlines | Sci-Tech Headlines


Government: Delivering Lower Card Fees To Business

Commerce and Consumer Affairs Minister David Clark has today announced the Government’s next steps to reduce merchant service fees, that banks charge businesses when customers use a credit or debit card to pay, which is estimated to save New Zealand businesses ... More>>

SEEK NZ Employment Report: April 2021

OVERVIEW OF APRIL 2021: STATE OF THE NATION: April, for the second consecutive month, saw the highest number of jobs ever advertised on Applications per job ad fell 9% month-on-month (m/m). SEEK job ads were up by 12% m/m. SEEK job ads were ... More>>

Commerce Commission: Warns Genesis Over Business Billing Errors

The Commerce Commission has issued a warning to Genesis Energy Limited about billing errors concerning electricity line charges to business customers. Genesis reported the errors to the Commission. The Commission considers that Genesis is likely to ... More>>

Stats: Lower Job Security Linked To Lower Life Satisfaction

People who feel their employment is insecure are more likely than other employed people to rate their overall life satisfaction poorly, Stats NZ said today. New survey data from the March 2021 quarter shows that 26 percent of employed people who thought ... More>>

The Conversation: The Outlook For Coral Reefs Remains Grim Unless We Cut Emissions Fast — New Research

A study of 183 coral reefs worldwide quantified the impacts of ocean warming and acidification on reef growth rates. Even under the lowest emissions scenarios, the future of reefs is not bright. More>>

The Conversation: Why Now Would Be A Good Time For The Reserve Bank Of New Zealand To Publish Stress Test Results For Individual Banks

Set against the backdrop of an economy healing from 2020’s annus horribilis , this week’s Financial Stability Report (FSR) from the Reserve Bank (RBNZ) was cautiously reassuring: the country’s financial system is sound, though vulnerabilities remain. More>>