Fruit and vegetable prices saw the largest drop
Food prices in New Zealand decreased by 0.3% in the 12 months to June 2024, marking the first annual decrease since August 2018, according to figures released by Stats NZ.
“The decrease for food prices was driven by lower prices for tomatoes, cheese, and potatoes,” said James Mitchell (pictured above), consumer prices manager at Stats NZ.
Significant drops in key categories
In the past year, prices for fruit and vegetables, as well as meat, poultry, and fish, fell by 16.1% and 1.4%, respectively.
“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,” Mitchell said.
Price rises in restaurant meals and grocery food
Despite the overall decrease, prices in several broad food groups increased over the year.
Restaurant meals and ready-to-eat food prices rose by 4%, grocery food by 2.3%, and non-alcoholic beverages by 4.3%.
Historical context of food prices
Despite the annual drop, the overall food price level remains the third highest since the series began in 1961.
Food prices increased by 1% in June compared to May.
“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,” Mitchell said.
Olive oil prices surge
Even with the overall decrease, certain items saw significant price hikes.
The average price of a one-liter bottle of olive oil increased to $19.99, up 49.5% in the 12 months to June 2024. Other items such as dine-in lunch/brunch and soft drinks also saw price increases, Stats NZ reported.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
