Stats NZ published its Selected Price Indexes (SPI) for February, revealing that food prices increased by 2.4% over the past year but declined by 0.5% compared to the previous month.
The February SPI marks a notable drop compared to January, when food prices surged by 1.9%, recording the largest monthly increase in nearly three years.
Nicola Growden, Stats NZ’s prices and deflators spokesperson, stated that the annual rise in food prices was primarily driven by increased costs for grocery items (up 4.3%), restaurant meals, and ready-to-eat foods (up 2.5%).
In February, prices for fruits and vegetables decreased by 3.6% compared to January and by 6.2% compared to February 2024, making it the sole food category in the February SPI basket to show a price decline.
Growden noted that lower prices for seasonal fresh produce in February, along with Valentine’s Day specials, contributed to the decrease in food prices. Boxed chocolate prices dropped by about 26% during the month. This is a remarkable shift from the previous month’s SPI, where rapid food price increases in January were largely driven by higher costs for boxed chocolates and chocolate blocks.
Alcohol and tobacco monthly prices slightly increased in February by 0.1%.
In terms of airfares, Stats NZ reported that international airfare prices dropped by 5% over the 12 months leading up to February 2025, with a steep decline of 14.6% recorded specifically in February.
Domestic airfares also decreased, albeit more modestly, with a drop of 3.6% in February and a 3.7% decline over the 12 months ending in February 2025.
“Getting to your overseas destination was cheaper than this time last year, while the cost of staying there was more expensive,” Growden said.