Food inflation slows - but prices still 9.6% higher than last year

August 11, 2023
Food price increase.

New figures reveal food inflation remains high as many Kiwis struggle with the cost of living.

Monthly food prices fell 0.5% in July compared with June, Stats NZ said today — and after adjusting for seasonal effects, they were down 1.1%, with fruit and vegetable prices contributing the most to the monthly fall.

But food prices remained 9.6% higher last month than they were in July last year.

"While prices for fruit and vegetables fell 4.1% in the month, they are 6.2% more expensive than this time last year," Stats NZ's James Mitchell said, comparing the overall annual increase to 2008 and 2011.

Monthly food prices fell 0.5% in July compared with June, Stats NZ said today. (Source: 1News)

The year-on-year rise was due to increases across all the broad food categories Stats NZ measures, the agency said.

Grocery food prices were the biggest driver with an 11.9% increase.

Other key factors were restaurant meals and ready-to-eat food prices increasing 8.9%; meat, poultry, and fish prices increasing 9.3%; fruit and vegetables prices increasing 6.2%; and non-alcoholic beverage prices increasing 9.1%.

"Increasing prices for fresh eggs, potato crisps, and six-pack yoghurt were the largest drivers within grocery food," Mitchell said.

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