Household living costs still remain higher than 'official' inflation

Stats NZ data shows the cost of living for the average household increased three percent in the year to December - down from a 3.8 percent increase in September.

It's quite different to annual inflation - still sitting at 2.2 percent.

Prices and deflators spokesperson, Nicola Growden, says for many households, interest payments on mortgages remain high - and still contribute significantly to living costs.