FX.co ★ New Zealand Food Inflation Hits 14-Month High in March

In March 2025, New Zealand witnessed a surge in annual food inflation, which increased to 3.5%, up from February's 2.4%, marking the steepest rise since January 2024. This uptick was primarily driven by the grocery sector and the categories including meat, poultry, and fish, with prices climbing by 5.1% and 5.3%, respectively. Notably, grocery prices were propelled by significant hikes in milk, butter, and chocolate, with butter experiencing a staggering 63.6% increase, and milk up by 16.0% compared to the previous year. Beef products also recorded noteworthy price increases. In contrast, fruit and vegetable prices experienced a 2.7% annual decline, following a 6.2% drop in February. Despite some relief from these falling produce prices, the escalating costs of essential items continue to strain household budgets. On a monthly scale, food prices increased by 0.5%, rebounding from a 0.5% decrease in February.