Food prices fall for third month, but groceries and power still climbing

Food prices increased 4.4% in the 12 months to November, but were down 0.4% from October to November. Photo / 123rf

Food prices increased by 4.4% in the 12 months to November, but once again have decreased on a monthly basis for the third time in a row, according to Stats NZ.

Food prices fell 0.4% in November compared with October, with the fruit and vegetables subgroup the main contributor to the overall monthly decrease, down 4.5% over the month.

A range of seasonal produce, including tomatoes, strawberries, cucumbers and lettuce, contributed to this decrease.

Higher prices for the grocery food group, up 4.6%, contributed the most to the annual increase in food prices, although they fell 0.1% on a monthly basis.

This was followed by meat, poultry and fish, up 7.7% annually. Prices for the category also fell 0.1% on a monthly basis.

Stats NZ highlighted three food products: a 2-litre bottle of milk, which has had its price increase 15.8% annually; a porterhouse/sirloin beef steak, which has increased 26.7% annually; and a loaf of white bread, which is up 53.2% annually.

Stats NZ prices and deflators spokeswoman Nicola Growden said it now cost 74¢ more for a loaf of white bread than this time last year.

“Food prices have fallen in each of the past three months. This is the first time there has been more than two consecutive months of decrease since December 2023,” Growden said.

Non-alcoholic beverages were up 4.4% annually and 1.2% monthly, while restaurant and ready-to-eat meals were up 2.4% annually and up 0.2% on a monthly basis.

Prices for alcoholic beverages were up 0.7% annually, but down 0.1% on a monthly basis, while cigarettes and tobacco products were up 5.8% annually and 0.3% monthly.

Rent prices

Existing rent prices, known as the stock measure of rental property, rose 1.4% annually and increased 0.1% on a monthly basis.

This edition also marked the return of the flow measure of rental property that indicates prices for new rentals or tenancies in the market.

This measure was up 0.5% on an annual basis and 0.7% monthly.

“New tenancy rent prices are more expensive in Auckland in November 2025 compared to the same period in 2024,” Growden said.

“For the Wellington region, new tenancy rent prices have fallen 2.7% in the 12 months to November 2025.”

Electricity prices rose 12.3% in the year to November (up 0.1% monthly), with gas prices also higher, up 17.3% annually and 2.2% monthly.

In the transport group, petrol prices were 2.8% higher in the November year (up 1.8% monthly), with diesel prices following suit, climbing 6.2% annually (up 3% monthly).

Domestic air transport prices were down 14.4% on an annual basis, but increased by 6.5% monthly.

International air transport prices are up 3.9% annually and also increased on a monthly basis, up 0.4%.

As for accommodation, domestic prices were down 1% on an annual basis, but lifted 7.1% monthly; while international accommodation prices are up 8.8% 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.

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