Smallest food price rise since May 2021 recorded

This amidst dip in fruit and vegetable prices

By Mina Martin

14 Mar 2024

In the 12 months to February, food prices witnessed a 2.1% increase, the smallest annual growth since May 2021, according to fresh figures from Stats NZ.

This rise presents a significant slowdown from the 12% hike recorded in the year to February 2023, highlighting a marked change in price trends.

Fruit and vegetable prices lead decline

The subdued annual inflation rate for food prices is largely attributed to a 9.3% drop in fruit and vegetable prices over the same period.

“Cheaper prices for fresh produce such as tomatoes, broccoli, and lettuce drove the decrease in fruit and vegetable prices,” said Will Bell, consumer prices manager at Stats NZ.

Varied price movements across food categories

Despite the overall slowdown in food price inflation, other food groups experienced price increases in the year to February:

restaurant meals and ready-to-eat food prices surged by 6.7%
grocery food prices saw a 3.9% increase
non-alcoholic beverage prices went up by 4.3%
meat, poultry, and fish prices marginally rose by 0.2%

“Going out for a meal or grabbing takeaways was more expensive in February 2024,” Bell said.

Accommodation costs on the rise

Additionally, the report shed light on accommodation costs, with international accommodation prices jumping 24.5%, a stark contrast to the 6.3% decrease observed in the previous year.

“The cost of staying at accommodation while abroad is more than 40% more expensive than five years ago,” Bell said.

Domestic accommodation also saw a 6.1% increase over the same period.

Monthly food prices experience a dip

Monthly food prices decreased by 0.6% in February compared to January, primarily due to lower prices for apples, kumara, and tomatoes. This monthly decline also saw contributions from decreased prices for boxed chocolates, yoghurt, and lamb, further easing the cost pressures on consumers.