Food prices dip in November as vegetables fall, while accommodation costs rise
New Zealand’s food prices dipped 0.1% in November compared to October, driven by cheaper vegetables, according to Stats NZ.
However, rising domestic accommodation costs – up 6.9% – are adding pressure to household budgets as travel demand grows.
Stats NZ prices spokesperson Nicola Growden (pictured above left) explained the food price trends.
“This was the third consecutive month that we have seen price falls for vegetables, alongside rising prices for fruit,” Growden said. “In November, tomatoes, broccoli, and cucumber were cheaper, while apples, grapes, and kiwifruit pushed up fruit prices.”
Vegetables saw a 7.9% drop, while fruit prices climbed 4%. Other grocery items such as boxed chocolates, chocolate biscuits, and steak also fell in price. However, these declines were offset by rising costs for cheddar cheese and instant coffee, Stats NZ data showed.
Accommodation costs climb amid travel demand
While food prices provided slight relief, domestic accommodation prices surged by 6.9% in November. Growing demand for travel across New Zealand has pushed hotel and lodging costs higher.
“We also saw increased domestic hotel prices, so the cost of exploring New Zealand has become more expensive,” Growden said.
Supplier costs add pressure to grocery prices
Beneath the surface, grocery supplier costs continue to climb, signaling potential price pressures ahead.
The Infometrics-Foodstuffs New Zealand Grocery Supplier Cost Index (GSCI) reported a 2.1% annual increase in supplier prices for November, up slightly from 2.0% in October.
“This slight shift shouldn’t be overblown… But with some further cost increases for specific items, there is still some cost pressure clearly remaining in the system,” said Brad Olsen (pictured above right), chief executive at Infometrics.
Bakery and chilled foods, including staples like butter and milk, saw costs rise 3.1%, while chocolate and cooking oil also continued their upward trend.
Mixed signals for households heading into 2025
Despite a slight monthly drop, annual food prices remain 1.3% higher than a year ago, driven by essentials such as butter, milk, and olive oil. Combined with rising supplier costs and climbing accommodation expenses, households face ongoing cost pressures heading into the new year.
While falling vegetable prices offer some temporary relief, broader market trends suggest challenges will persist, setting a complex stage for 2025.
See the Stats NZ figures here. To read more about supplier costs, click here.
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