Lowest annual food inflation since April 2021 recorded
Stats NZ has reported that food prices rose just 0.7% in the year to March, marking the smallest annual increase since April 2021.
The rate represents a significant slowdown from the 2.1% increase seen in the year to February and a drastic drop from the 12.1% rise recorded in March.
Key drivers of current trends
The moderation in food price inflation was largely attributed to a significant decrease in the cost of fruit and vegetables, which fell 13.3% over the same period.
“The annual decrease in fruit and vegetable prices was the largest recorded since the series began in 1999,” James Mitchell (pictured above), consumer prices manager at Stats NZ, said in a media release.
Mitchell highlighted that the decline was driven by notably lower prices for tomatoes, lettuce, and avocados.
Price movements across food categories
Despite the overall slowdown, all other broad food groups saw price increases over the year:
- Restaurant meals and ready-to-eat food prices jumped by 6.4%
- Grocery food prices went up by 1.7%
- Non-alcoholic beverage prices rose by 4.3%
- Meat, poultry, and fish saw a modest increase of 0.2%
“Visiting a café or restaurant, or getting takeaways was more expensive in March 2024,” Mitchell said.
Alcoholic beverages also see price lift
The cost of alcoholic beverages also rose, with a 5.2% increase over the year. Beer prices led this hike, with a 7.1% increase.
“The cost of buying a box of beer bought off licence was 10% more expensive than a year ago, while a pint of beer at a bar or restaurant was 6% more expensive,” Mitchell said.
Monthly changes reflect seasonal adjustments
On a monthly basis, food prices in March 2024 fell by 0.5% compared to February, marking the seventh drop in the past 12 months.
The most significant monthly price reductions were seen in the fruit and vegetables category, driven by lower prices for kūmara, apples, and grapes. The meat, poultry, and fish group also contributed to the decline, with notable price drops for lamb, beef steaks, and bacon, Stats NZ reported.
To compare the latest figures with the previous month’s, click here. Also see how inflation impacts food spending.
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