Food prices have increased 4.4% in the 12 months to May, according to the latest numbers from Stats NZ.
That’s up from 3.7% in the 12 months to April.
The May increase was primarily driven by the meat, poultry and fish food group, up 5.4%, and the grocery food group, up 5.2%.
Butter, milk and cheese drove the increase in the grocery food group. Stats NZ said the average price of milk was up 15.1%, butter 51.2%, and cheese 30.1%.
Stats NZ prices and deflators spokesperson Nicola Growden said the cost of a 500 gram block of butter is “nearly twice as expensive as the lower prices seen in early 2024”.
Last month, Fonterra chief executive Miles Hurrell said the reason for soaring butter prices was due to global demand.
“The international market is pushing these prices very high at the moment, and our job is to reflect that in the returns that we give back to our farmer owners.”
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Hurrell said he understood consumers’ frustrations, but “ultimately, our job is to understand what the international market is doing and put our prices and products out there accordingly.”
Stats NZ said for meat, poultry and fish, the price increase was driven by beef steak, up 18.6%, and beef mince, up 13%.
Food prices up 0.5% month-on-month
From April to May this year, food prices increased 0.5%, following an 0.8% increase the month prior.
Stats NZ said this increase was due to higher prices for fruit and vegetables, which were up 3.6%, and meat, poultry and fish, which were up 1.7%.
“More expensive tomatoes, avocados, and cucumber drove the increase for fruit and vegetables, while higher prices for chicken nuggets and lamb leg drove the increase for meat, poultry, and fish,” Stats NZ said.