Changes to the CPI in New Zealand – 2024

The consumers price index (CPI), New Zealand’s best known measure of inflation, measures the rate of price change of goods and services purchased by households. The CPI consists of a basket of goods and services that represent purchases made by households. The goods and services in the basket, and their relative importance, are reviewed every three years to ensure the basket remains up to date. The basket now contains 598 items, down from 649. The updated Consumers Price Index still has 11 groups, with the largest group by weight being the housing and household utilities group (29.4% of the CPI). The weighting of housing rental costs rose to 11.21% and the transport group rose to 14.34%. As part of the 2024 basket review: – 11 items were added – 21 items were removed

Some of the items are shown below in the graphic. Stats NZ has shown that people are spending more on meal kits and smart watches, but less on older technology such as DVDs, home telephone line rentals, national toll calls, and burglar alarm monitoring services. Improved coverage and data sources for cruise holiday spending means these have now been added to the basket as their own specific item.

Source: Stats NZ

For more on the CPI view the key notes (accompanied by fully coloured diagrams/models) on elearneconomics that will assist students to understand concepts and terms for external examinations, assignments or topic tests.