FX.co ★ New Zealand Food Inflation Tops 5%, Highest Since 2023

In July 2025, annual food inflation in New Zealand surged to 5%, an increase from 4.6% in June, representing the highest rate since November 2023. This escalation was primarily driven by the grocery sector, which saw a 5.1% rise due to heightened costs for milk, butter, and cheese. The meat, poultry, and fish category significantly contributed as well, experiencing a 7.9% increase, largely influenced by a substantial rise in beef steak by 24.6% and beef mince by 19.3%. Additionally, fruit and vegetable prices increased by 7.3%, non-alcoholic beverages climbed 4.4%, and there was a 2.2% rise in the cost of restaurant meals and ready-to-eat foods. The predominant factors fueling the annual food inflation are the rising costs of groceries and meat, underscoring the ongoing strain on household budgets, particularly regarding essential commodities.