Food prices have increased 3.5% in the 12 months to March, according to Stats NZ figures released today.
The increase follows a 2.4% increase in the 12 months to February 2025.
Grocery food, up 5.1%, and meat, poultry and fish, up 5.3%, contributed the most to the increase in food prices.
Infometrics principal economist Brad Olsen said the reason for the prices being driven up is the global demand for dairy and meat.
“Of course, that’s good for New Zealand farmers but at the same time it is costing Kiwi consumers more.”
However, partially offsetting the increase was lower prices for fruit and vegetables, down 2.7%.
This is due to better growing conditions across the country and cheaper fertiliser and fuel which has pushed down production costs Olsen said.
The price increase for grocery food was due to higher milk (up 16%), butter (up 63.6%), and chocolate prices.
Prices and deflators spokesperson Nicola Growden said the average price for a 250g block of chocolate was $5.99 in March 2025.
“That’s $1.60 more expensive than three years ago.”
Olsen said cocoa prices have raised globally, “because there’s not quite as much cocoa being produced but there’s still lots of consumers out there with a sweet tooth”.
The price increase for meat, poultry, and fish was due to higher prices for beef steak, lamb leg and beef mince.
“The weighted average price of 1kg of beef mince was $19.96 in March 2025, nearly $2 more expensive than this time last year,” Growden said.
On a monthly basis, food prices went up 0.5% in March, following a 0.5% fall in February.
Higher prices for grocery food (0.9%) and non-alcoholic beverages (1.1%) drove the increase.
Chocolate and yogurt drove up the grocery food prices while instant coffee and soft drinks increased non-alcoholic beverages.