Annual food prices rose 8.9% in August with food and grocery prices rising 10.6%, Statistics NZ says.
The Food Price Index for August saw grocery food prices again leading the increase, with Stats NZ highlighting rising prices for eggs.
Annual food prices rose 9.6% in July, with grocery food prices increasing 11.9% and meat, poultry and fish prices rising 9.3% annually.
In August, restaurant meals and ready-to-eat food prices increased 8.9%, meat, poultry, and fish prices increased 8.0% while non-alcoholic beverage prices increased 9.1%.
Fruit and vegetables prices increased 5.4% annually, Stats NZ said.
Restaurant meals and ready-to-eat food was the second-largest contributor to the annual movement, Stats NZ said.
“The increase in this group was driven by the same contributors as last month – dine-in lunch/brunch, takeaway meals, and dine-in evening meals.”
Monthly food prices rose 0.5% in August when compared with July 2023. After adjusting for seasonal effects, they were up 0.4%.
Fruit and vegetable prices ticked up in August when compared to July, rising 3.3%, or 2.8% after seasonal adjustment.
In July, monthly food prices fell 0.5%.
After seasonal adjustment, they fell 1.1% in July when compared to June, driven by fruit and vegetables prices which dropped 4.1%, or 7.8% after seasonal adjustment.
International food prices
Globally food prices declined in August, the United Nations’ (UN) Food Price Index showed.
Overall, the Food and Agriculture Organisation's Food Price Index, which tracks monthly changes in the international prices of globally-traded food commodities, averaged 121.4 points for the month, a fall of 2.1% from July.
Of particular interest to New Zealand, the Dairy Price Index fell 4% from July.
"In August, international prices across all dairy products declined, with whole milk powder prices falling the most, influenced by abundant supplies especially from Oceania amid seasonally rising production, together with a slowdown in the pace of imports by China, although import volumes remained relatively high," the FAO said.
It said international butter and cheese prices dropped, in part because of “lacklustre market activities associated with summer holidays in Europe”.
"Skim milk powder prices fell to their lowest level since mid-2020 due to subdued import demand and the lacklustre market activities associated with the summer holidays in Europe. Moreover, international butter and cheese prices dropped, reflecting similar factors coupled with steady production schedules in Oceania."
The Meat Price Index dropped by 3%. Demand from China was weaker alongside a jump in exports from Australia.
Cereal prices declined by 0.7% from July while vegetable oil prices decreased by 3.1%, the FAO said.
But there were some rising food prices. The FAO Sugar Price Index rose by 1.3% in August when compared to July, and the FAO All Rice Price Index rose by 9.8% from July to reach a 15-year nominal high.
The FAO said this increased reflected trade disruptions in the aftermath of a ban on Indica white rice exports by India, the world’s largest rice exporter.
“Uncertainty about the ban’s duration and concerns over export restrictions caused supply-chain actors to hold-on to stocks, re-negotiate contracts or stop making price offers, thereby limiting most trade to small volumes and previously concluded sales.
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