Smallest Annual Food Price Rise in Over Five Years

Food prices in New Zealand increased 0.2 percent in the 12 months to May 2024, the smallest increase since September 2018, according to figures released by Stats NZ today.

The smaller annual food inflation (compared with the 0.8 percent annual increase in April 2024) was due to cheaper prices for fruit and vegetables (down 11.4 percent), as well as meat, poultry, and fish (down 1.2 percent), in the 12 months to May 2024.

"Prices for meat, poultry, and fish recorded an annual decrease for the first time in over three years," consumer prices manager James Mitchell said.

"The decrease was driven by cheaper prices for lamb chops, legs of lamb, and chicken pieces."

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

• restaurant meals and ready-to-eat food prices - increased 4.8 percent
• grocery food prices - increased 1.3 percent
• non-alcoholic beverage prices - increased 2.7 percent.

"Eating out and ordering in are still taking the cake when it comes to the overall annual increase," Mitchell said.

Cheese prices at five-year lows

Despite overall food prices increasing in the 12 months to May 2024, the fall in cheese prices was the largest contributor of any individual food item. The price for a 1kg block of cheese was $10.02 per kilo in May 2024, down from $13.60 in May 2023.

"Of all the items in the food basket, cheaper cheese prices had the largest impact on overall food prices," Mitchell said.

"Despite this, there was enough inflationary pressure from other items to record an overall food price increase."

Food prices fall in May

New Zealand food prices fell 0.2 percent in May 2024 compared with April 2024, following a 0.6 percent increase the previous month.

Cheaper food prices were driven by lower prices for grocery foods, due to cheaper yoghurt and potato crisps.

Fruit and vegetable prices also fell for the fourth consecutive month, driven by lower prices for mandarins, potatoes, and apples.

"May 2024 saw the largest number of food items falling in price in over three years. Fifty-three percent of the items we track prices for fell in price during May 2024, compared with 44 percent of items, which were more expensive," Mitchell said.

Petrol prices fall in May

Prices in New Zealand for both petrol and diesel were down in May 2024 compared with April 2024, falling 2.6 percent and 3.3 percent, respectively.

"Motorists around the country enjoyed lower fuel prices in May, but they are still higher than May 2023," Mitchell said.

"The removal of the transport temporary relief package partly contributed to the higher prices this year."

Petrol prices are over 50 percent more expensive than four years ago, while diesel prices are over 80 percent more expensive.