Food prices rose by 4.4% in the year to May, an increase from the 3.7% annual rise recorded in April, the latest figures from Stats NZ have shown.
The rise in May was mainly due to a 5.4% increase in the meat, poultry, and fish category.
There was also a 5.2% rise in grocery food prices which was driven by milk, cheese, and butter.
Stats NZ said the average price of milk was up 15.1%, cheese 30.1%, and butter 51.2%.
According to Stats NZ prices and deflators spokesperson Nicola Growden, the price of a 500-gram block of butter is now almost double the lower prices observed in early 2024.
In May, Fonterra chief executive Miles Hurrell explained that the surge in butter prices is driven by strong global demand. He said that “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.”
Meanwhile, the rise in prices for meat, poultry, and fish was mainly due to an 18.6% increase in beef steak and a 13% increase in beef mince.
On a monthly basis, food prices rose by 0.5% from April to May this year, after increasing by 0.8% the previous month. Stats NZ attributed this rise to higher prices for fruit and vegetables, which increased by 3.6%, and meat, poultry, and fish, which went up by 1.7%.
Rising costs of tomatoes, avocados, and cucumbers contributed to the increase in fruit and vegetable prices, whereas higher prices for chicken nuggets and lamb leg were responsible for the rise in meat, poultry, and fish costs.
Instant coffee prices dropped by 6.1% this month after having surged 10.4% the previous month.