New Zealand's cost of living for the average household rose 2.2% in the year to December 2025 quarter, easing slightly from a 2.4% increase in the 12 months ending in the September 2025 quarter, according to a Stats NZ household living-costs price indexes (HLPIs) report on Monday.

The inflation rate, as measured by the consumer price index (CPI), was 3.1% in the 12 months to the December 2025 quarter, up slightly from 3% in the previous quarter.

The HLPIs measure how inflation affects 13 different household groups, as well as an all-households average, whereas the CPI measures inflation across New Zealand as a whole.

"Interest payments fell 17.3% for the average household over the past year, while the cost of building a new home increased 1.2% over the same period," said Nicola Growden, Stats NZ's prices and deflators spokesperson.

The inflation was 3.1% for beneficiaries, 2.2% for Maori, and 3.8% for superannuitants in the 12 months to December 2025, per the report.

Superannuitant households faced the highest inflation, driven by an 8.8% rise in local authority rates, which made up nearly a fifth of the total, along with electricity up around 12% and health insurance up over 20%.

The inflation was 0.8% for the highest-expenditure household group and 3.7% for the lowest-expenditure household group over the same period, the report said.

The low inflation for the highest-expenditure households was largely due to an 18.6% drop in mortgage interest payments, which especially benefits these households since most own their homes and many have mortgages.

On a quarterly basis, inflation for all households eased to 0.2% in the December 2025 quarter, down from 0.8% in the September 2025 quarter.