'Real' household consumption expenditure
There are two ways household consumption expenditure can increase or decrease over time. These are:
- by changes in the average price of goods and services purchased (ie, inflation or deflation)
- by changes in the volume of goods and services purchased.
This report card is concerned with changes in the volume of goods and services purchased by households. To report this, 'real' household consumption expenditure data is used, which has had the impact of inflation (or deflation) removed, rather than 'current' household consumption expenditure data. 'Real' household consumption expenditure data uses 1995/96 prices to report the volume of expenditure on goods and services by New Zealand households. This also allows comparisons to be made through time.
For example, in the year ending March 2008, 'real' household consumption expenditure in New Zealand was $82.1 billion. On average, 'real' household consumption expenditure per household was $53,943, and 'real' household consumption expenditure per person was $19,350. However, in current prices, household consumption expenditure in New Zealand for the year ending March 2008 was $101.1 billion; household consumption expenditure per household was $66,483 and household consumption expenditure per person was $23,849.
This information has come from the Household Consumption Expenditure environmental report card.
Last updated: April 2009
