Annual food prices rise 12.5 per cent, largest increase since 1987

The cost of living is starting to bite for more New Zealanders. Photo / 123RF

Annual food prices increased 12.5 per cent for the year to April 2023, StatsNZ said today.

Fruit and vegetable prices were the biggest driver, up 22.5 per cent.

StatsNZ said prices increased across all the broad food categories.

Grocery food prices increased 14 per cent compared with April last year.

On an annual basis, this compares to a 12.1 per cent annual rise for the year to March.

Monthly food prices rose 0.5 per cent in April compared with March. After seasonal adjustment, they rose 0.8 per cent.

StatsNZ consumer prices manager James Mitchell said: “The 12.5 per cent annual increase in April 2023 was the largest since September 1987 which included the introduction of GST in 1986.”

“Increasing prices for barn or cage-raised eggs, potato chips, and 6-pack yoghurt were the largest drivers within grocery food,” Mitchell said. “These were the same drivers for grocery food last month.”

Restaurant meals and ready-to-eat food prices were up 1.7 per cent in the last month and were the largest contributor to the monthly food price increase.

“Higher prices for dining out and takeaway coffee drove the increase in restaurant meals and ready-to-eat food,” Mitchell said.