Food prices rise 4.1% for September year, fall monthly for first time since February

Food prices continue to rise, but the rate of increase fell last month, Stats NZ says.

Food prices increased 4.1% in the September year, the smallest annual increase since April 2025, according to figures published by Stats NZ.

But in a sign that food inflation may have peaked, the overall food group was down 0.4% monthly, representing the first time food prices have dropped monthly since February 2025.

Higher prices for the grocery food group were the largest contributor to the annual rise, lifting 3.9%. However, they fell month on month by 0.6%.

The average milk price was $4.72 for 2 litres, up 15.1% annually. Cheese was $12.81 for a 1kg block, up 31.4% annually, and beef mince was $23.11 for 1kg, up 17.7% annually.

This was followed by meat, poultry and fish, up 6.4% annually (down 0.4% monthly), and restaurant meals and ready-to-eat food, up 2.5% annually (up 0.3% monthly).

Fruit and vegetables are up 5.8% annually (down 2.5% monthly), and non-alcoholic drinks are up 3.3% annually (up 0.7% monthly).

“All five food groups continue to grow annually, but the rate of increase for overall food prices has slowed this month,” Stats NZ prices and deflators spokeswoman Nicola Growden said.

“The price of white bread increased by 69 cents per loaf since December 2024.”

On a monthly basis, the average price for cucumber was $10.98 a 1kg, a 34.1% decrease, while capsicums were $18.68 a 1kg, a 23.4% decrease.

Those with a sweet tooth will be happy as average chocolate prices (bars, blocks, excluding drinking) were $5.15, a 9.0% monthly fall, and average chocolate (boxed, loose) prices were $10.13, a 16.2% monthly fall.

In the non-food groups, cigarettes and tobacco were up 4.8% annually (flat monthly), while alcoholic drinks were up 1.1% annually (up 0.5% monthly).

Rent prices, known as the stock measure of rental property, rose 1.8% annually but were flat on a monthly basis.

Electricity prices rose 11.6% annually (up 0.2% monthly), while gas prices rose 17% annually (up 1.4% monthly).

In the transport group, petrol prices rose 1.8% annually (up 0.9% monthly) and diesel prices rose 2.9% annually (also up 0.9% monthly).

International airfares increased 6.9% annually after a 3.0% decrease in the 12 months to August 2025. Monthly international airfare prices were up 10.7%.

Similarly, domestic airfares increased by 2.1% annually, with monthly prices increasing by 11%.

“This is the largest annual increase in airfares, in a September month, since 2021,” Growden said.

“The increases for both domestic and international airfares mean travellers experienced higher prices during the school holidays.”

Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.

• Listen and subscribe to the Today in Business podcast – the top headlines from the NZ Herald business team summarised and delivered by an artificial intelligence (AI) voice as an easily digestible recap.