New Zealand Food Inflation

Annual food inflation in New Zealand jumped to 5% in July 2025, up from 4.6% in June, marking the highest rate since November 2023. The grocery food group led the increase, rising 5.1% due to higher prices for milk, butter, and cheese. The meat, poultry, and fish group was the next largest contributor, climbing 7.9%, driven by beef steak (+24.6%) and beef mince (+19.3%). Fruit and vegetables rose 7.3%, while non-alcoholic beverages increased 4.4%, and restaurant meals and ready-to-eat foods went up 2.2%. Overall, rising grocery and meat prices were the main drivers of the annual food inflation. The data highlights continued pressure on household budgets, particularly for essential staples.