New Zealand Food Inflation

Annual food inflation in New Zealand accelerated to 3.5% in March 2025, up from 2.4% in February, marking the highest rate since January 2024. Grocery food and meat, poultry, and fish categories drove the increase, with prices up 5.1% and 5.3%, respectively. Grocery price hikes were largely due to sharp increases in milk, butter, and chocolate, with butter jumping 63.6% and milk rising 16.0% year-over-year. Beef products also saw notable gains. Offsetting some of these increases, fruit and vegetable prices fell 2.7% annually, following a 6.2% decline in February. Despite this moderation, rising costs for essential staples continue to place pressure on household budgets. On a monthly basis, food prices rose 0.5% following a 0.5% fall in February.