New Zealand’s food prices rose in March, marking a 0.5% monthly increase and reversing February’s decline. According to Stats NZ, food prices were also up 3.5% year-on-year.
“The average price for a 250g block of chocolate was $5.99 in March 2025, that’s $1.60 more expensive than three years ago,” said Nicola Growden of Stats NZ, underlining the impact of cumulative inflation on household staples.
Grocery Food and Beverages Drive Price Growth
Grocery food prices were the main contributor to the monthly increase, rising by 0.9% in March. Shoppers paid more for staples like chocolate and yoghurt, both of which were singled out as key drivers of the surge.
Non-alcoholic beverages also rose by 1.1%, with items such as instant coffee and soft drinks behind the increase. These categories continue to place pressure on household budgets, especially for families managing regular grocery needs.
Dairy Products Show Steepest Increases
Dairy products remain a key concern in the inflation picture. Stats NZ’s data revealed that butter prices jumped a staggering 63.6% compared to March 2024. Cheese and milk also recorded double-digit increases, up 20.4% and 16% respectively year-on-year.
These sustained increases are adding to financial strain for many households. Dairy staples are a regular fixture in most grocery baskets, and the compounding price growth over the past year highlights the lasting impact on everyday spending.
Fruit and Vegetables Offer Some Relief
The fruit and vegetable segment remained a soft spot in New Zealand’s inflation data, posting a 0.3% drop in March and a 2.7% decline from a year earlier. While the broader category eased pressure on overall food inflation, standout increases in tomatoes and cabbage—up 15.2% and 12.1% respectively—tempered the relief.
Other Food Categories See Mixed Trends
The price of meat, poultry, and fish remained relatively stable, increasing just 0.1% over the month but rising 5.3% annually. Restaurant meals and ready-to-eat foods also saw only a minor monthly uptick of 0.1%.
This varied pattern across food categories highlights the complexity of consumer price movements, where certain items are surging while others remain stable or decline.
Alcohol and Fuel Prices Show Modest Declines
Fuel continued its downward trend in March, with petrol prices falling 2.1% month-on-month and 6.2% over the year. Diesel mirrored this movement, dropping 2.3% for the month and 10.6% compared to March 2024. Alcohol and tobacco prices saw marginal shifts—up 0.2% and down 0.1% respectively—reflecting a more stable picture in non-essential goods.
Travel and Accommodation Present a Varied Picture
March saw a mixed picture in travel and accommodation expenses. Domestic airfares climbed 2.2%, potentially impacting local travel budgets, while international fares dropped 4%, easing costs for outbound travellers. Accommodation trends diverged as well—domestic rates fell 2.9%, but international accommodation surged by 8.8%.
Rental Market Sees Continued Price Growth
Stats NZ has released updated rental data following a reporting delay, using both “stock” and “flow” measures to capture housing market trends.
The stock measure—which reflects all tenancies—recorded a 0.3% increase in March and a 3.3% rise over the past year. While the flow measure, which tracks new rental agreements, was referenced for its relevance to current conditions, March figures were not disclosed.
Conclusion
A modest increase in food prices masks stronger movements underneath the surface. Dairy costs continue to rise sharply, reinforcing inflationary pressures, even as fuel and certain accommodation prices fall.
This uneven dynamic reflects the broader complexity in the current economic environment, where essential and non-essential categories are pulling in different directions. The data, monitored by Stats NZ, is expected to influence forward-looking fiscal and monetary policy.