Food prices rose by 4.6% in the year leading up to June 2025, following a 4.4% increase over the 12 months to May, according to data released by Stats NZ.
The increase was driven by higher prices for milk, butter, beef mince, and steak.
Elevated prices for groceries (up 4.7%) and meat, poultry, and fish (up 6.4%) were the primary contributors to the overall rise.
“Dairy products continue to drive the higher cost in food prices,” Stats NZ prices and deflators spokesperson Nicola Growden said.
Milk prices rose by 14.3% year-on-year to $4.57 for two litres over the 12 months to June. Butter increased by 46.5% to $8.60 for 500 grams, and cheese climbed by 30% to $13.04 for a one-kilogram block.
According to Growden, “Butter prices are nearly five dollars more expensive than 10 years ago, an increase of over 120%.”
The rise in the meat, poultry, and fish category was mainly due to price hikes for beef steak (up 22.3%) and beef mince (up 15.6%). In June, the average price for 1 kg of beef mince climbed to $21.73, compared to $18.80 a year earlier.
Stats NZ also published data on rental prices with a 2.6% increase in the year to June 2025, after a 2.8% increase over the previous 12 months to May 2025.
This marks the second smallest annual increase since October 2011, when rent prices rose by 2.5%.