Overall, food prices rose 0.5 per cent in June, with higher vegetable prices partly offset by a 1.8 per cent drop in fruit prices.
The potato industry fears frozen chips are being dumped on the New Zealand market from Europe, with Potatoes New Zealand filing a complaint of dumping with the Ministry of Business, Innovation and Employment.
"There's a significant amount of inventory of frozen fries sitting there that could basically wipe out our entire domestic industry almost overnight," said Potatoes New Zealand CEO Chris Claridge told One News.
"So you will get cheap chips for a period of time and then when the domestic producers are wiped out, I will guarantee you the price will go up."
Claridge warned it could result in job losses at New Zealand's five potato processors, where 450 people are employed.