Food prices fell on a monthly basis for the fourth time, a sign of easing cost pressures.
Food prices fell for the fourth month in a row in December, according to new data from Stats NZ, marking a continual decrease over the final third of 2025.
However, compared to the same time in 2024, food prices were up, as was the cost of power, which saw double-digit growth.
Prices for the overall food group decreased 0.3% in December 2025 compared with November 2025, with prices for the non-alcoholic beverages subgroup contributing the most to the monthly decline, dropping 2.1%.
Meat, poultry and fish prices were also down, by 0.9%, with grocery food prices dropping by 0.1%, and restaurant and ready-to-eat meals flat on a monthly basis.
The fruit and vegetable subgroup was the only category to experience a monthly increase, up 1.8%.
Stats NZ prices and deflators spokeswoman Nicola Growden said a Sunday roast lamb was cheaper for the month of December.
“However, the prices of vegetables that typically accompany roast lamb, such as onions, carrots, broccoli and potatoes, increased.”
On an annual basis, overall food prices increased by 4.0% in the 12 months to December 2025, after a 4.4% increase in the 12 months to November 2025.
Higher prices for the grocery food group, up 4.6%, contributed the most to the annual increase in food prices, followed by meat, poultry, and fish, up 7.4% annually.
The fruit and vegetable subgroup and restaurant meals and ready-to-eat subgroup were also both up 2.4% over the year.
Prices for non-alcoholic beverages were also higher on an annual basis, up 3.6% in the 12 months to December 2025.
Growden said olive oil was the biggest offsetting contributor to the overall increase.
The average price for olive oil was $17.45 a litre in December 2025.
“Olive oil prices were the lowest since March 2024. After increasing steadily in price through 2024, they are now 23.4% lower than March 2025, when one litre of olive oil cost $22.79,” Growden said.
“Salad season was cheaper in December 2025 as prices for vegetables such as lettuce, cucumber, and avocado were all down as well.”
Looking at the other categories, prices for alcoholic beverages were up 1.2% annually, but down 0.6% on a monthly basis, while cigarettes and tobacco products remained up 5.8% annually but fell 0.1% monthly.
Rent and energy
Existing rent prices, known as the stock measure of rental property, rose 1.3% annually in the year to December and increased 0.1% on a monthly basis.
The flow measure of rental property, which indicates prices for new rentals or tenancies in the market, was down 0.3% on an annual basis but rose 1.5% on a monthly basis.
Electricity prices rose 12.2% in the year to December (up 1.5% monthly), with gas prices also higher, up 17.5% annually and 1.9% monthly.
Growden said that, since December 2021, electricity prices had risen by 27.3%, while gas had risen by 56.0%.
In the transport group, petrol prices were 1.4% higher in the December year (up 0.1% monthly), with diesel prices following suit, climbing 4% annually (up 0.4% monthly).
Domestic air transport prices were down 1.2% on an annual basis, but increased by 15.8% monthly.
International air transport prices were up 6.6% annually and increased on a monthly basis by 32.9%.
As for accommodation, domestic prices were up 4.9% on an annual and monthly basis, while international accommodation prices were up 14.7% annually, but fell 0.5% on a monthly basis.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.