The rising cost of insurance has driven higher inflation for poorer households and affected superannuitants the most, according to the latest report from Statistics New Zealand.
The report said living costs for low-spending households increased 2.6% in the year ended in September, up 1.5% and 1.1% more than high-spending households.
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 audio visual equipment, Stat NZ said.
Superannuitants experienced the highest inflation of all household groups. Their overall costs rose 0.9%, compared to the 0.6% rise overall for households, Stat NZ consumer prices manager Matthew Haigh said.
“Nearly nine out of ten superannuitants own their own home, so they bear the brunt of rising homeownership costs,” Haigh said. “In September, rises in local authority rates and home insurance had the greatest impact on this group.”
Superannuitants also experienced the largest effect from price rises for health insurance, up 3.1% across groups.
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