{"id":104688,"date":"2025-10-28T06:04:11","date_gmt":"2025-10-28T06:04:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/104688\/"},"modified":"2025-10-28T06:04:11","modified_gmt":"2025-10-28T06:04:11","slug":"average-households-got-15-4-reduction-in-mortgage-payments-over-past-year","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/104688\/","title":{"rendered":"Average households got 15.4% reduction in mortgage payments over past year"},"content":{"rendered":"<p>\nStats NZ says falling mortgage interest rates in the past year drove down the cost of living for households\n<\/p>\n<p>A 15.4% reduction in the mortgage interest rate bill for the average household helped push down household living costs in the past year,\u00a0 Statistics NZ says.<\/p>\n<p>Latest <a href=\"https:\/\/www.stats.govt.nz\/news\/household-living-costs-increase-2-4-percent\/\" rel=\" noopener nofollow\" target=\"_blank\">Stats NZ data shows<\/a> the cost of living for the average Kiwi household, as measured by the household living-costs price indexes (HLPIs) increased 2.4% in the 12 months to the September 2025 quarter, down from 2.6% for the June quarter.<\/p>\n<p>The latest figure is lower that the official measure of inflation, the Consumers Price Index (CPI),\u00a0 in the year to September, which came in at 3.0%, up from 2.7% in the June quarter.<\/p>\n<p>The significant difference between Stats NZ&#8217;s household living-costs price indexes (HLPIs), and the CPI is that the HLPIs include interest payments, while the CPI instead includes the cost of building a new home.<\/p>\n<p>What this has meant is that while mortgage interest rates were going up the HLPIs were higher than the CPI &#8211; but now they are lower.<\/p>\n<p>The HLPIs hit 8.2% in the 12 months to December 2022, while the most recent high for the CPI was 7.3% in June 2022.<\/p>\n<p>This is the first release of the HLPIs following a comprehensive review of them by Stats NZ.<\/p>\n<p>Stats NZ &#8220;paused&#8221; the household living-costs price indexes (HLPI) for the March 2025 and June 2025 quarter releases while the review was completed.<\/p>\n<p>Stats NZ says the HLPIs measure how inflation affects 13 different household groups, plus an all-households group (an average household). In contrast, the CPI measures how inflation affects New Zealand as a whole.<\/p>\n<p>&#8220;The two measures of inflation are typically used for different purposes. A key use of the CPI in New Zealand is monetary policy, while the HLPIs provide insight into the cost of living for different household groups.&#8221;<\/p>\n<p style=\"\"><img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2025\/10\/house-live1.jpg\" class=\"drupal-media\" style=\"\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"Stats NZ says falling mortgage interest rates in the past year drove down the cost of living for&hellip;\n","protected":false},"author":2,"featured_media":104689,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,219,111,139,69],"class_list":["post-104688","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-new-zealand","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/104688","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=104688"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/104688\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/104689"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=104688"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=104688"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=104688"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}