Electricity and gas prices surged in the December year, with food prices up 4%, down from 4.4% in the November year, Statistics NZ says.
Higher grocery food prices, which increased 4.6%, contributed most to the annual food price increase. This was followed by meat, poultry, and fish, with prices up 7.4% annually, Statistics NZ says. However, month-on-month prices brought better news for consumers with Statistics NZ's food group down 0.3%, and meat, poultry and fish down 0.9%.
The new consumer price data comes as Statistics NZ releases its latest monthly Selected Price Indexes (SPI).
Other major annual increases in the SPI came from electricity which rose 12.2%, gas which was up 17.5%, international air transport which rose 6.6%, domestic accommodation which climbed 4.9%, and international accommodation which jumped 14.7%.
The annual electricity and gas price rises were similar to those of the November year, which were 12.3% and 17.3%, respectively.
CPI into focus
The monthly SPI data contains about 47% of what makes up the Consumers Price Index (CPI, making it a good early indicator of what the CPI is doing.
Statistics NZ's September quarter CPI showed an annual increase of 3%. The December quarter CPI is due for release on January 23. The Reserve Bank has 1% to 3% target band for inflation, which is based on the CPI. The Reserve Bank is due to review monetary policy for the first time in 2026 on February 18. The Official Cash Rate (OCR) is currently at 2.25%.
In terms of food prices, Statistics NZ says its latest figures show the average price for milk, beef steak and white bread - representing the cheapest available options - surged.
- milk was $4.92 per 2 litres (previously $4.25), up 15.8% annually
- beef steak – porterhouse was $44.30 per kilogram (previously $36.39), up 21.7% annually
- white bread was $2.20 per 600 grams (previously $1.39), up 58.3% annually.
There's detail on Statistics NZ's price index methods here.
The table below shows key percentage changes in monthly and annual prices. Statistics NZ compares December 2025 with November 2025 for the monthly percentage change, and December 2025 with December 2024 for the annual percentage change.
3 Comments
This is exactly why the economy is not recovering. Consumer essentials are still rising well above inflation and wage growth. It's no wonder the average household still feels broke. Who cares if falling prices for TVs or furniture dilutes the CPI.
Rising above inflation and wage growth isn't going to be near inflation for a couple of years I feel. Never a better reason than this to change jobs if you aren't getting the wage growth needed.
Meanwhile electricity was free in December. Right now. $0.00003/kWh while I'm billed 10,000x that. Good times.
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