Food Prices See Smallest Annual Increase Since May 2021

Food prices increased 2.1 percent in the 12 months to February 2024, the smallest increase since May 2021, according to figures released by Stats NZ said today.

The 2.1 percent increase is noticeably lower when compared with the 12.0 percent increase in the 12 months to February 2023.

The lower annual increase was due to cheaper fruit and vegetable prices, down 9.3 percent in the 12 months to February 2024.

"Cheaper prices for fresh produce such as tomatoes, broccoli, and lettuce drove the decrease in fruit and vegetable prices," consumer prices manager Will Bell said.

All other broad food groups increased in the 12 months to February 2024. Price movements, in order of their contribution, were:

• restaurant meals and ready-to-eat food prices - increased 6.7 percent
• grocery food prices - increased 3.9 percent
• non-alcoholic beverage prices - increased 4.3 percent
• meat, poultry, and fish prices - increased 0.2 percent.

"Going out for a meal or grabbing takeaways was more expensive in February 2024," Bell said.

Prices for accommodation up in the year

The cost of accommodation both internationally and domestically has increased in the 12 months to February 2024.

Prices for international accommodation increased 24.5 percent in the 12 months to February 2024, after a decrease of 6.3 percent in the 12 months to February 2023.

"The cost of staying at accommodation while abroad, is more than 40 percent more expensive than five years ago," Bell said.

Domestic accommodation increased 6.1 percent in the 12 months to February 2024.

Food prices fall in February 2024

Monthly food prices fell 0.6 percent in February 2024 compared with January 2024.

The biggest contributor to this fall was fruit and vegetables, driven by cheaper prices for apples, kumara, and tomatoes. Other items that have contributed to the monthly fall include boxed chocolates, yoghurt, and lamb.