FX.co ★ NZ Food Inflation Steady at 5% in August

In August 2025, New Zealand's annual food inflation persisted at a steady rate of 5%, mirroring the pace observed in July and marking the highest level seen since November 2023. The primary contributor to this inflationary trend was grocery food prices, which saw a 4.7% annual increase, primarily driven by escalated costs in milk, cheese, and butter. Dairy products emerged as the significant factor driving the overall rise in food costs. In addition, the category encompassing meat, poultry, and fish experienced an 8.1% surge, fueled by increased prices of beef steak, beef mince, and lamb leg. Meanwhile, the prices of fruits and vegetables climbed by 8.9%, non-alcoholic beverages rose by 3.9%, and the cost of restaurant meals and ready-to-eat foods increased by 2.4%.