Food prices increase 8.3 percent annually, largest in 13 years

Food prices were 8.3 percent higher in August 2022 compared with August 2021, Stats NZ said today.

This is the largest annual increase since July 2009, when annual food prices increased 8.4 percent.

In August 2022, the annual increase was due to rises across all the broad food categories measured. Compared with August 2021:

• grocery food prices increased by 8.7 percent
• fruit and vegetable prices increased by 15 percent
• restaurant meals and ready-to-eat food prices increased by 6.5 percent
• meat, poultry, and fish prices increased by 7.6 percent
• non-alcoholic beverage prices increased by 4.1 percent.

Grocery food was the largest contributor to the movement.

“Increasing prices for eggs, yoghurt, and cheddar cheese were the largest drivers within grocery food,” consumer prices manager Katrina Dewbery said.

The second-largest contributor to the annual movement was fruit and vegetables. The items within this group that influenced this movement the most were capsicums, potatoes, and onions.

Rising prices for fruit and vegetables drive monthly movement

Monthly food prices were 1.1 percent higher in August 2022 compared with July 2022. After adjusting for seasonal effects, they were up 0.9 percent.

A 4.1 percent rise in fruit and vegetable prices was the largest contributor to the monthly movement. After adjusting for seasonal influence, fruit and vegetables were up 2.3 percent.

“Vegetables had the largest impact on this monthly rise, influenced by higher prices for tomatoes, capsicums, and cabbage,” Mrs Dewbery said.

The second-largest contributor to the monthly movement was grocery food, which rose 1.0 percent. This was driven by rising prices for eggs (up 6.7 percent), yoghurt (up 4.7 percent), and chocolate biscuits (up 7.1 percent).