New Zealand Food Inflation

Annual food inflation in New Zealand accelerated to 4.4% in May 2025, rising from 3.7% in April and reaching its highest level since December 2023. The continued uptick in food prices further pressure on household budgets with the grocery and meat, poultry, and fish groups leading the increase, up 5.2% and 5.4%, respectively. All five major food categories saw price increases compared to the same month last year. Within grocery items, the rise was largely due to higher costs for milk, butter, and cheese. Meat price gains were led by beef products, with beef steak jumping 18.6% and beef mince climbing 13.0%. Policymakers will be watching closely, as sustained inflation could influence future decisions on interest rates. On a monthly basis, overall food prices 0.5% in May, following a 0.8 percent rise in April.