Annual food prices drop for first time in six years - fruit and veges lead way

Good news for the inflation fight as food prices continue to ease, Stats NZ figures show.

Food prices in New Zealand decreased 0.3% in the 12 months to June 2024, the first annual decrease in nearly six years - since August 2018 - according to figures released by Stats NZ today.

“The decrease in food prices was driven by lower prices for tomatoes, cheese and potatoes,” consumer prices manager James Mitchell said.

In the 12 months to June 2024, prices for fruit and vegetables, and meat, poultry, and fish fell 16.1% and 1.4% respectively.

“The decrease for fruit and vegetable prices is the largest recorded since the series began, as prices fell from the record-high level in June 2023,” Mitchell said.

All other broad food groups increased in price in the 12 months to June 2024.

The cost of eating out or getting takeaways rose 4%.

Despite the annual fall in overall food prices, the price level is the third highest since the series began in 1961. Overall, food prices increased 1% in June compared with May.

On a monthly basis, fruit and vegetables were up 2.3%.

“While food prices were cheaper in June 2024 than they were in June 2023, 11 of the past 12 months have actually had cheaper food prices than in June 2024,” Mitchell said.

Price movements in order of their contribution, were:

• restaurant meals and ready-to-eat food – increased 4%
• grocery food – increased 2.3%
• non-alcoholic beverages – increased 4.3%.

The data also included the price movements for transport and accommodation. They showed petrol prices are still up 11.6% in the past year, despite falling 4.6% for the month.

Rents also continued to rise, up 4.5% for the year and 0.3% for the month.

Today’s release is from Stats NZ’s monthly Selected Price Index data which represents around 45% of the full Consumer Price Index.

The Consumer Price Index for the June quarter is due to be released next Wednesday at 10.45. It is expected to provide a more comprehensive verdict on how the inflation fight is tracking.

Liam Dann is business editor-at-large for the New Zealand Herald. He is a senior writer and columnist. He also presents and produces videos and podcasts and is the author of the best-selling book BBQ Economics. He joined the Herald in 2003.