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flag New Zealand households saw lower inflation due to falling mortgage costs, but low-income groups still faced rising expenses.

flag New Zealand's average household cost of living rose 2.4% from September 2024 to September 2025, below the 3.0% consumer price index inflation, driven by a 15.4% drop in mortgage interest payments. flag Lower mortgage costs eased pressure for higher-spending households, whose inflation fell to 0.8%, while beneficiaries (3.4%) and lowest-spending households (4.0%) faced higher inflation due to rising rents, electricity (up 11.3%), and local rates (up 8.8%). flag Superannuitants saw a 3.9% cost increase, largely due to rate hikes. flag Despite relief from falling interest rates, many households, especially lower-income groups, remain under financial strain.

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