Food Prices Increase 5.0 Percent Annually

Food prices increased 5.0 percent in the 12 months to July 2025, following a 4.6 percent increase in the 12 months to June 2025, according to figures released by Stats NZ today.

"All five food groups recorded higher prices when compared to this time last year," prices and deflators spokesperson Nicola Growden said.

Higher prices for the grocery food group, up 5.1 percent, contributed the most to the annual increase in food prices.

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

The average price for:

• milk was $4.70 per 2 litres, up 16.0 percent annually
• butter was $8.59 per 500 grams, up 42.2 percent annually
• cheese was $13.01 per 1 kilogram block, up 29.5 percent annually.

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

"The price for 2 litres of milk has increased 33.9 percent since July 2020," Growden said.

"In the 12 months to July 2025, milk prices contributed more to the increase in overall food prices than any other food item."

Prices for the meat, poultry, and fish group, up 7.9 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 and beef mince, up 24.6 percent and 19.3 percent, respectively.

"The average price of 1 kilo of beef mince costs $21.97 in July 2025, about $3.50 more than a year ago," Growden said.

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

• fruit and vegetables, up 7.3 percent
• restaurant meals and ready-to-eat food, up 2.2 percent
• non-alcoholic beverages, up 4.4 percent.

Rent prices increase 2.4 percent annually

Rent prices increased 2.4 percent in the 12 months to July 2025, following a 2.6 percent increase in the 12 months to June 2025.

"Rent prices are still increasing, but at the slowest rate since 2011," Growden said.