The Country
  • The Country home
  • Latest news
  • Audio & podcasts
  • Opinion
  • Dairy farming
  • Sheep & beef farming
  • Rural business
  • Rural technology
  • Rural life
  • Listen on iHeart radio

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • Coast & Country News
  • Opinion
  • Dairy farming
  • Sheep & beef farming
  • Horticulture
  • Animal health
  • Rural business
  • Rural technology
  • Rural life

Media

  • Podcasts
  • Video

Weather

  • Kaitaia
  • Whāngarei
  • Dargaville
  • Auckland
  • Thames
  • Tauranga
  • Hamilton
  • Whakatāne
  • Rotorua
  • Tokoroa
  • Te Kuiti
  • Taumurunui
  • Taupō
  • Gisborne
  • New Plymouth
  • Napier
  • Hastings
  • Dannevirke
  • Whanganui
  • Palmerston North
  • Levin
  • Paraparaumu
  • Masterton
  • Wellington
  • Motueka
  • Nelson
  • Blenheim
  • Westport
  • Reefton
  • Kaikōura
  • Greymouth
  • Hokitika
  • Christchurch
  • Ashburton
  • Timaru
  • Wānaka
  • Oamaru
  • Queenstown
  • Dunedin
  • Gore
  • Invercargill

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In

Advertisement
Advertise with NZME.
Home / The Country

Food prices jump 4.4% as butter costs soar, Stats NZ reports

Liam Dann
By Liam Dann
Business Editor at Large·NZ Herald·
16 Jun, 2025 11:28 PM3 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save
    Share this article
Garth Bray speaks with Ryan Bridge about food prices and inflation. Video / Herald NOW

Food prices increased 4.4% in the 12 months to May 2025, following a 3.7% increase in the 12 months to April 2025, according to figures released by Stats NZ today.

Higher prices for the grocery food group and the meat, poultry and fish group contributed most to the annual increase in food prices, up 5.2% and 5.4%, respectively.

“All five food groups recorded an annual price increase in May,” prices and deflators spokesperson Nicola Growden said.

The price increase for the grocery food group was because of higher prices for milk, butter and cheese.

“The cost of a 500 gram block of butter is nearly twice as expensive as the lower prices seen in early 2024,” Growden said.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Soaring butter prices have been the focus of media attention in recent months as record dairy export prices have flowed through to the supermarket aisles.

The average price for butter was $8.42 per 500g, up 51.2% annually and a monthly increase of 13.5%.

Cheese was $13.04 per 1kg block, up 30.1% annually.

Advertisement
Advertise with NZME.

And milk was $4.57 per 2 litres, up 15.1% annually.

The increase in the meat, poultry and fish group was driven by higher prices for beef steak and beef mince, up 18.6% and 13%, respectively.

Meanwhile, the news was better for rental prices.

The monthly Selected Price Index (which measures about 51% of the quarterly Consumers Price Index) showed rents up 2.8% for the year.

That followed a 3% increase in the 12 months to April 2025.

The 2.8% increase is the lowest increase for rent prices since January 2015, when prices also increased 2.8%.

“Annual rent price increases haven’t been below 2.8% since 2011,” Growden said.

“Today’s figures suggest annual CPI inflation will likely remain parked towards the upper part of the 1-3% target range for much of 2025, said ASB senior economist Mark Smith.

Today’s release prompted Westpac to upgrade its CPI forecast to 2.8% for the June quarter.

“Under the surface, domestic inflation is easing, but only gradually,” said Westpac senior economist Satish Ranchhod.

Advertisement
Advertise with NZME.

“However, the early softness in imported inflation has turned around, pushing overall inflation higher.”

On a monthly basis, food prices were up 0.5% in May 2025, following a 0.8% rise in April 2025.

More expensive tomatoes, avocados and cucumbers drove the increase for fruit and vegetables, while higher prices for chicken nuggets and lamb leg drove the increase for meat, poultry and fish.

However, grocery prices were down for the month, by 0.7%.

Instant coffee prices fell 6.1% for the month following a spike of 10.4% a month earlier.

Liam Dann is business editor-at-large for the New Zealand Herald. He is a senior writer and columnist and also presents and produces videos and podcasts. He joined the Herald in 2003.

Advertisement
Advertise with NZME.
Save
    Share this article

Latest from The Country

The Country

US President Trump slaps 15% tariff on NZ goods

The Country

Tsunami alerts with Shane Jones on The Country

The Country

'Gaining ground': 6000 native trees to enhance Whanganui forest


Sponsored

Kiss cams and passion cohorts: how brands get famous in culture

Advertisement
Advertise with NZME.

Latest from The Country

US President Trump slaps 15% tariff on NZ goods
The Country

US President Trump slaps 15% tariff on NZ goods

The White House has revised the tariff on New Zealand goods to 15% from 10%.

01 Aug 02:17 AM
Tsunami alerts with Shane Jones on The Country
The Country

Tsunami alerts with Shane Jones on The Country

01 Aug 02:11 AM
'Gaining ground': 6000 native trees to enhance Whanganui forest
The Country

'Gaining ground': 6000 native trees to enhance Whanganui forest

01 Aug 01:00 AM


Kiss cams and passion cohorts: how brands get famous in culture
Sponsored

Kiss cams and passion cohorts: how brands get famous in culture

01 Aug 12:26 AM
NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP