Food prices soar 12.5% annually - largest increase since 1987

The cost of food has jumped 12.5% annually, which is the largest increase since 1987.

The new figures from Stats NZ compared prices in April 2023 with the same month last year.

"The 12.5 percent annual increase in April 2023 was the largest since September 1987 which included the introduction of GST in 1986," consumer prices manager James Mitchell said.

Grocery food prices were up 14%.

“Increasing prices for barn or cage-raised eggs, potato chips, and 6-pack yoghurt were the largest drivers within grocery food,” Mitchell said. “These were the same drivers for grocery food last month.”

Last month's annual increase was 12.1%.

Mitchell said in today's announcement fruit and vegetables prices increased by 22.5%, restaurant meals and ready-to-eat food prices increased by 9%, meat, poultry, and fish prices increased by 9.5% and non-alcoholic beverage prices increased by 8%.

"The second-largest contributor to the annual movement was fruit and vegetables. The increase was driven by tomatoes, avocados, and potatoes.

"Monthly food prices rose 0.5 percent in April 2023 compared with March 2023," Mitchell said.

"After adjusting for seasonal effects, they were up 0.8 percent."

Restaurant and ready-to-eat food rose 1.7%.

“Higher prices for dining out and takeaway coffee drove the increase in restaurant meals and ready-to-eat food,” Mitchell said.