Wellington, Sep 16
New Zealand's food prices surged 5 per cent in the 12 months to August 2025, maintaining the pace set in July, the statistics department Stats NZ reported on Tuesday.
The increase was largely driven by the grocery food group, particularly dairy products, which saw steep rises, reports Xinhua news agency, quoting Stats NZ.
The average price for 2 litres of milk jumped 16.3 per cent to 4.72 NZ dollars (2.81 US dollars) for the cheapest available options, with cheese soaring 26.2 per cent and butter climbing 31.8 per cent, it said.
"Dairy products continue to be the main driver for the higher annual food prices," Stats NZ prices and deflators spokesperson Nicola Growden said.
The price of 2 litres of milk has increased by 88 cents since December 2023, Growden said.
Meat, poultry, and fish posted the next largest group rise, up 8.1 per cent year-on-year, led by beef steak, beef mince, and lamb leg, statistics show.
Meanwhile, national rent prices rose 2.1 per cent in the year to August, the smallest annual jump since March 2011, Stats NZ said.
Earlier in August, the statistics department Stats NZ reported that New Zealand's volume of retail sales rose by 0.5 per cent in the June 2025 quarter compared to the March quarter.
The growth was driven mainly by increases in electrical and electronic goods, supermarkets and groceries, pharmaceutical retailing, and department stores, said Stats NZ economic indicators spokesperson Michelle Feyen.
Despite this overall growth, retail sales fell in most regions, with the South Island seeing a slight increase of 0.2 per cent, while the North Island experienced a 0.3 per cent decline, statistics show.
Over the longer term, from June 2022 to June 2025, retail sales in the South Island have grown significantly faster than in the North Island, according to Feyen.
— IANS
Reader Comments
As someone who imports NZ dairy products to India, these price hikes will eventually affect Indian consumers too. NZ is a major supplier of milk powder and cheese to our market. Expect price adjustments in coming months.
Interesting to see how different regions are performing. South Island growing while North Island declining shows regional economic disparities. Wonder if this affects job opportunities for immigrants differently across regions.
Meanwhile in India, we've been dealing with food inflation for years. 5% might sound high to them, but we've seen much worse here. Still, hope this doesn't impact our dairy imports too badly. ðŸ„
The article mentions rent prices only increased 2.1% - that's actually positive news amidst the food inflation. Housing costs are usually the biggest expense for Indian families abroad, so this might provide some relief.
While the numbers look concerning, I appreciate that the statistics are transparent and regularly reported. Many countries could learn from NZ's data transparency. At least citizens know what's happening with prices.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.