Annual food prices drop for first time in nearly six years

Annual food prices in New Zealand have dropped for the first time since August 2018, Stats NZ says.

Prices across the board decreased 0.3% in the 12 months to June 2024, its data showed.

Stats NZ consumer prices manager James Mitchell said the decrease for food prices was driven by lower prices for "tomatoes, cheese, and potatoes".

Prices for fruit and vegetables, and meat, poultry, and fish fell 16.1% and 1.4% respectively during this period.

"The decrease for fruit and vegetable prices is the largest recorded since the series began, as prices fell from the record-high level in June 2023."

Despite the annual fall in overall food prices, the price level is the third highest since the series began in 1961. Food prices increased 1% in June 2024 compared with May 2024.

"While food prices were cheaper in June 2024 than they were in June 2023, 11 of the past 12 months have actually had cheaper food prices than in June 2024."

Despite the decrease in overall food prices, olive oil, dine-in lunch or brunch, and soft drinks all increased in price.

The average price of a 1-litre bottle of olive oil in New Zealand increased to $19.99, up 49.5% in the 12 months to June 2024.

Restaurant meals and ready-to-eat food increased by 4%, grocery food increased by 2.3%, and non-alcoholic beverages increased by 4.3%.

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