Latest data reveals major expenditure shifts
Recent data from Stats NZ indicated significant changes in New Zealanders’ household spending patterns due to the climbing cost of living.
Analysis from the Household Economic Survey, covering 13 expenditure groups, showed notable increases in six key areas from June 2019 to 2023, including essentials like food, housing, and health.
Major expenditure shifts
The sectors experiencing the most substantial hikes in weekly expenditure are:
- Food: A 28.1% rise to $300
- Housing and Utilities: Up by 15.5% to $398
- Health: An 18.5% increase to $50
- Transport: A 16.5% boost to $252
- Miscellaneous Goods and Services: Up 21.6% to $139
- Other Expenditures: Including savings and interest payments, up by 31.4% to $176
These categories now represent 82.2% of the total household expenditure as of June 2023.
In a media release, Victoria Treliving, senior manager for wealth and poverty statistics at Stats NZ, attributed the overall rise in household expenditure to the heightened cost of living spurred by global events like the COVID-19 pandemic and extreme weather occurrences.
Kiwis’ shifting spending priorities
From June 2019 to 2023, households reduced spending on communication and recreation, while increasing expenditures on food and other essentials. Recreation and culture expenses dropped to 8.3% from 9.6%, and communication to 2.5% from 2.9%, of total net household expenditure by June 2023.
“While households have spent more on essentials such as food and interest payments, we are also seeing more households prioritising personal contributions to their saving schemes,” Treliving said.
In 2023, food spending made up 18.7% of total net household expenditure, a rise from 17.3% in 2019. Spending on other categories climbed to 11% from 9.9%. Notably, interest payments went up by 17.0%, and savings contributions surged by 63.8% in the same year.
Caution in trend comparison
Stats NZ said it’s important to note that the data covers a four-year span from June 2019 to 2023, diverging from the survey’s typical three-year gap, largely due to COVID-19-related delays. This extended interval may amplify observed trends.
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