FX.co ★ New Zealand Food Inflation Hits 6-Month High

In May 2025, New Zealand experienced an increase in annual food inflation, which rose to 4.4%, up from 3.7% in April, marking the highest level since December 2023. This ongoing rise in food prices is placing added strain on household budgets, particularly with the grocery, and meat, poultry, and fish categories showing significant increases of 5.2% and 5.4%, respectively. All five major food categories reported price hikes compared to the previous year. The grocery sector's increase was largely attributed to rising costs of milk, butter, and cheese. In the meat sector, beef products saw the most significant price increases, with beef steak prices skyrocketing by 18.6% and beef mince by 13.0%. Policymakers will be monitoring these developments closely, as sustained inflation may impact future interest rate decisions. On a month-to-month basis, overall food prices rose by 0.5% in May, following an earlier 0.8% rise in April.