Fuel spending surged 17% in March as the Iran war drove sharp increases in the price of petrol and diesel.
The rise in fuel prices masked a drop in apparel and hospitality spending, according to Stats NZ’s electronic card data.
Meanwhile, food prices fell by 0.6% in March compared with February in the latest selected price index.
Annually, food prices increased by 3.4% in the 12 months to March 2026, following a 4.5% rise in the year to February.
Electronic card data shows spending in the retail industries in March 2026 grew by 0.7% or $52 million compared with February, with core industry spending decreasing 0.1% or $8.8m month-on-month.
Key to the lift in spending was fuel, up by 17.3% or $81m.
Petrol and diesel prices both increased from February 2026 to March 2026, with petrol prices up 18.6% month-on-month while diesel prices increased 42.6%.
Prices for these two fuel types also increased in the 12 months to March 2026 – petrol was up 13.9% and diesel up 36.9%.
The increases in petrol and diesel prices this month were the largest for both fuel types since Stats NZ started publishing monthly price movements for vehicle fuels in July 2011.
Higher prices for the meat, poultry, and fish group contributed the most to the increase in food prices, up 7.3% annually, although it fell 0.1% on a monthly basis.
The restaurant meals and ready-to-eat food subcategory was the next largest contributor, with prices up 2.8% annually. The category was the only one of the group to see prices rise on a monthly basis, up 0.3%.
Prices for the fruit and vegetables category were up annually by 6.4%, although they fell 2.9% on a monthly basis.
Non-alcoholic beverages had the next largest annual change, up 3.5%, although fell 0.2% on a monthly basis.
The grocery food subcategory had the lowest annual change, up 1.2%, and fell 0.8% on a monthly basis.
The largest contributors to the overall annual increase were porterhouse/sirloin steak, takeaway coffee, white bread, and beef mince. Price decreases were recorded for olive oil and free-range eggs.
The largest contributors to the overall monthly fall were kiwifruit, chocolate blocks, cheddar cheese and beef mince. Price increases were recorded for boxed chocolates and instant coffee.
Prices for alcohol, cigarettes and tobacco grew on an annual and monthly basis in March.
Alcoholic beverage prices lifted by 1% on an annual and monthly basis, while prices for cigarettes and tobacco lifted 6.3% annually and 0.4% monthly.
Existing rent prices, known as the stock measure of rental property, increased by 0.7% annually but was flat on a monthly basis.
The flow measure, which indicates prices for new rentals or tenancies in the market, was down 0.4% on an annual basis but lifted 1.4% on a monthly basis.
Electricity and gas prices continued to rise, with prices for electricity up 13.1% annually and 0.7% monthly.
Prices for gas increased by 11.7% annually and 0.8% monthly.
Domestic air transport prices were down in March, falling 7.3% on an annual basis and 14.4% monthly.
International air transport prices, meanwhile, were up 9.8% annually and 3.5% on a monthly basis.
Stats NZ prices and deflators spokesperson Nicola Growden said travellers typically book and pay for airfares in advance, so price changes reflect fares that were set up to 12 months ago.
As for accommodation, domestic prices were up 6% on an annual basis and fell 4.9% on a monthly basis, while international accommodation prices were down 0.7% annually and up 1.9% on a monthly basis.
As reported earlier, spending on fuel in March recorded the largest increase, up 17.3% or $81m.
Spending on consumables lifted 1.1% or $31m, with durable spending also lifting, up 1.2% or $19m.
Despite the increase in fuel prices, spending on motor vehicles (excluding fuel) also lifted in March, up 1.9% or $3.7m.
The two retail categories to bear the brunt of higher fuel spending were apparel and hospitality.
March spending on apparel fell by 4.2% or $14m, while hospitality spending fell 2.4% or $37m.
The non-retail (excluding services) category, which includes medical and other healthcare, travel, tour arrangements and postal and courier delivery, increased by 2.5% or $58m from February 2026.
The services category, which includes repair and maintenance, personal care, funerals and other personal services, also had its spending lift, up 0.1% or $500,000.
The total value of electronic card spending, including the two non-retail categories (services and other non-retail), increased from February 2026 by 1.3% or $124m.
In actual terms, cardholders made 182 million transactions across all industries in March 2026, with an average value of $55 per transaction. The total amount spent using electronic cards was $10 billion.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.