Food prices have increased 5% in the 12 months to July, led by higher costs for milk, butter, and cheese, according to the latest figures from Stats NZ.
It followed a 4.6% increase in the 12 months to June 2025, and a 4.4% increase in the 12 months to May 2025.
“All five food groups recorded higher prices when compared to this time last year,” Stats NZ prices and deflators spokesperson Nicola Growden said.
Higher prices for the grocery food group contributed the most to the annual food price increase — up 5.1%.
The price increase for this group was due to higher prices for milk, butter and cheese.
In the 12 months to July, milk was up 16% annually at $4.70 for two litres, butter was up 42.2% annually at $8.59 per 500 grams, and cheese was up 29.5% annually to $13.01 per 1kg block.
Growden said the average prices reflected the cheapest available option for each.
“The price for 2 litres of milk has increased 33.9% 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.”
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Prices for meat, poultry and fish were the next largest contributor to the annual food price increase.
This was driven by 24.3% increases in the price of beef steak and 19.3% for beef mince.
“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.
Rent prices also increased by 2.4% in the 12 months to July 2025, the slowest increase since 2011.
