Food prices increase 9.6 percent annually

Annual food prices were 9.6 percent higher in July 2023 than in July 2022, according to figures released by Stats NZ today.

“While overall food inflation has slowed, it is comparable to the increases we saw in 2008 and 2011,” consumer prices manager James Mitchell said.

In July 2023, the annual increase was due to rises across all the broad food categories Stats NZ measures. The following list shows each food group’s price rise for the year ended July 2023, in order of their contribution to the overall movement:

• grocery food prices increased 11.9 percent
• restaurant meals and ready-to-eat food prices increased 8.9 percent
• meat, poultry, and fish prices increased 9.3 percent
• fruit and vegetables prices increased 6.2 percent
• non-alcoholic beverage prices increased 9.1 percent.

“Increasing prices for fresh eggs, potato crisps, and six-pack yoghurt were the largest drivers within grocery food,” Mitchell said.

The second largest contributor to the annual movement was restaurant meals and ready-to-eat food. The increase in this group was driven by dine-in lunch/brunch, takeaway meals, and dine-in evening meals.

Monthly change

Monthly food prices fell 0.5 percent in July 2023 compared with June 2023. After adjusting for seasonal effects, they were down 1.1 percent.

Prices for fruit and vegetables such as tomatoes, avocadoes, and oranges contributed the most to the overall monthly fall and are also down year on year.

“While prices for fruit and vegetables fell 4.1 percent in the month, they are 6.2 percent more expensive than this time last year,” Mitchell said.