Food Prices Increase 2.4 Percent Annually

Food prices increased 2.4 percent in the 12 months to February 2025, following a 2.3 percent increase in the 12 months to January 2025, according to figures released by Stats NZ today.

Higher prices for the grocery food group and the restaurant meals and ready-to-eat food group contributed most to the annual increase in food prices, up 4.3 percent and 2.5 percent, respectively.

The price increase for grocery food was due to higher prices for milk, butter, and olive oil.

The average price of 2L of milk was $4.55 in February 2025, up from $3.94 in February 2024.

"The average price for a 500g block of butter was $7.32 in February. That's an increase of over 60 percent since this time last year," prices and deflators spokesperson Nicola Growden said.

Out of the five groups in the food basket, fruit and vegetables was the only group to record lower prices, falling 6.2 percent in the 12 months to February 2025.

Cheaper fruit and vegetable prices were driven by lower prices for kūmara, potatoes, and onions.

International airfare prices decrease while accommodation costs increase

International airfare prices decreased 5.0 percent in the 12 months to February 2025.

"Getting to your overseas destination was cheaper than this time last year, while the cost of staying there was more expensive," Growden said.

Overseas accommodation prices have increased 1.3 percent in the 12 months to February 2025.

Food prices decrease in February

Food prices fell 0.5 percent in February 2025, following a 1.9 percent rise in January 2025.

Lower prices for fruit and vegetables drove the fall in food prices in February 2025, down 3.6 percent.

"Prices for seasonal fresh produce were cheaper in February," Growden said.

"Specials for Valentine's Day also contributed to lower food prices, with boxed-chocolate prices down about 26 percent in the month."