Butter prices were up 42 percent from a year ago. Photo: 123RF
Annual food prices have risen at their fastest pace since since late 2023, driven by strong dairy and meat prices.
Stats NZ said food prices rose 5 percent in 12 months ended July, compared to a 4.6 percent annual rise the month before - the biggest increase since November 2023.
The monthly rate appeared to be slowing, with food prices rising 0.7 percent in July on the month before, compared to a 1.2 percent rise in June.
"All five food groups recorded higher prices when compared to this time last year," Stats NZ prices and deflators spokesperson Nicola Growden said.
Grocery - which included dairy - were the biggest contributor to the annual increase, as prices increased for butter, cheese and milk.
Butter was up 42.2 percent from a year ago, with the average cost of a 500-gram block at $8.59.
A 2-litre bottle of milk cost 16 percent more than a year ago, to an average $4.70, while a 1-kilogram block of cheese had increased nearly 30 percent to $13.01.
"In the 12 months to July 2025, milk prices contributed more to the increase in overall food prices than any other food item," Growden said.
Meat, poultry and fish prices were the next largest contributor to the increase in food prices, rising 7.9 percent from a year ago.
The increase was driven by higher prices for beef steak and mince, up 24.6 percent and 19.3 percent, respectively.
"The average price of 1 kilo of beef mince costs $21.97 in July 2025, about $3.50 more than a year ago," Growden said.
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