But months of previous increases meant the annual inflation statistics were still high, comparable to rates seen in 2008 and 2011, Stats NZ consumer prices manager James Mitchell said.
Still, the July data would be welcome news both for consumers and the Reserve Bank, Westpac economist Satish Ranchhod said.
Apart from the obvious relief to consumers, the Reserve Bank could take the Food Price Index as a sign some inflationary pressures were easing.
But Ranchhod said the central bank would be mindful of multiple other factors influencing inflation.
“Weather-related swings in something volatile like food prices, that’s not the main focus for monetary policy.”
And he said the annual food price index was still well above average wage increases for the past year.
Stats NZ today said grocery food prices recorded the highest annual jump, rising 11.9 per cent.
Across the year, meat, poultry, and fish prices increased 9.3 per cent.
Kiwi shoppers have been punished at the checkout for much of the year, as many fresh produce and other grocery prices have soared, even though the pace of inflation has mostly slowed since late summer.
Food prices are a major component of the overall inflation the Consumers Price Index measured.
Stats NZ previously said food prices were the largest contributor to the June 2023 annual inflation rate of 6 per cent.
In June, overall food prices were 1.6 per cent higher than in May. Even after adjustment for seasonal fluctuations, that increase was 0.9 per cent.
In the month of June alone, fruit and vegetable prices were up 2 per cent after seasonal adjustment.
