Stats NZ has released the latest food price data, which reveals a 4% rise in food prices throughout 2025.
The price of a loaf of bread surged nearly 60%.
According to Stats NZ, the annual inflation rate eased slightly in December, dropping from 4.4% in the 12 months to November.
Milk prices climbed 15.8% over the year, reaching $4.92 per two litres for the cheapest option. Beef steak rose 21.7%, while white bread surged 58.3%.
Olive oil prices plummeted, falling 23.4% in December compared to March.
On bread prices, Simplicity chief economist Shamubeel Eaqub said they have been rising for some time.
“For a long time, bread was a loss leader for supermarkets. Because the cost of inputs, particularly wheat, has increased so much, we’re now seeing the dam breaking and the price of bread increasing at the supermarket aisles.”
He noted that global wheat prices suggest ongoing pressure.
Soft drink prices fell 11.2%, lamb dropped 27.4%, apples rose 15.8%, and onions surged 38.2%.
Electricity prices also rose 1.5% and gas 1.9% in the month to December.