Food prices: Lowest increase since April 2021

Food prices have risen 0.7% in the last year — representing the smallest increase since April 2021.

According to figures released by Stats NZ today, the small increase was due to cheaper prices for fruit and vegetables, which were down 13.3% in the 12 months to March 2024.

"The annual decrease in fruit and vegetable prices was the largest recorded since the series began in 1999," Stats NZ consumer prices manager James Mitchell said.

"This was driven by cheaper prices for tomatoes, lettuce, and avocados."

All other food groups increased in price in the 12 months, which make up the overall increase.

Restaurant meals and ready-to-eat food prices increased by 6.4%, grocery food prices increased by 1.7%, non-alcoholic beverage prices increased by 4.3% and meat, poultry and fish prices increased by 0.2%.

Mitchell added: "Visiting a café or restaurant, or getting takeaways was more expensive in March 2024."

Alcoholic beverages were also up 5.2% this year, mostly driven by higher beer prices, which are up 7.1%.

“The cost of buying a box of beer bought off license was 10% more expensive than a year ago, while a pint of beer at a bar or restaurant was 6% more expensive,” Mitchell said.

Monthly food prices were down 0.5% in March, compared to February 2024.

“Food prices have fallen in 7 of the last 12 months,” Mitchell said.

The biggest contributor to the monthly fall was the fruit and vegetables group, driven by cheaper prices for kūmara, apples, and grapes.

The meat, poultry, and fish group also contributed to lower food prices, driven by cheaper prices for lamb, beef steaks, and bacon.

Foodstuffs said the latest data was "good news" for customers in the "fight to bring inflation down".

Chris Quin, Foodstuffs NZ’s managing director, says the result is testament to the hard work of the two co-ops’ 500+ local owner-operators to rein in food prices since inflation took off in 2022.

"This is a big achievement in our drive to do what we can to keep food prices lower for New Zealanders, after the record inflation of the past two years," says Quin.

"It’s been the toughest inflation fight many of our current generation of local grocers have experienced, and they know there’s more work to do."