Annual Food Prices Increase 5.0 Percent

Food prices increased 5.0 percent in the 12 months to August 2025, the same increase as in the 12 months to July 2025, according to figures released by Stats NZ today.

Higher prices for the grocery food group, up 4.7 percent, contributed most to the annual increase in food prices.

The price increase for the grocery food group was due to higher prices for milk, cheese, and butter.

The average price for:

• milk was $4.72 per 2 litres, up 16.3 percent annually
• cheese was $12.89 per 1 kilogram block, up 26.2 percent annually
• butter was $8.58 per 500 grams, up 31.8 percent annually.

The average prices for milk, cheese, and butter represent the cheapest available option for each.

"Dairy products continue to be the main driver for the higher annual food prices," prices and deflators spokesperson Nicola Growden said.

"The price of 2 litres of milk has increased by 88 cents since December 2023."

Prices for the meat, poultry, and fish group, up 8.1 percent, was the next largest contributor to the annual increase in food prices.

The increase in the meat, poultry, and fish group was driven by higher prices for beef steak, beef mince, and lamb leg.

"The average price for beef mince was $22.53 per kilo in August 2025, that's an increase of $3.40 in just one year," Growden said.

The annual price increases for the remaining food groups, in order of contribution were:

• fruit and vegetables, up 8.9 percent
• restaurant meals and ready-to-eat food, up 2.4 percent
• non-alcoholic beverages, up 3.9 percent.

Rent prices increase 2.1 percent annually

Rent prices increased 2.1 percent in the 12 months to August 2025, following a 2.4 percent increase in the 12 months to July 2025.

"The last time annual rent price increases were under 2.1 percent was March 2011," Growden said.