Stats NZ's latest Selected Price Indexes figures show petrol and diesel prices continue to dip month-on-month, food prices still rising with annual milk prices increasing every month for the last two years

Although fuel prices remained high in June, petrol and diesel prices have seen a monthly decrease, according to Statistics New Zealand’s latest Selected Price Indexes (SPI) figures.

Released on Friday, the latest SPI shows from May to June, petrol prices were down 4.2% while diesel prices decreased 12.1%.

This latest monthly decrease follows a slight drop in May, following two months of rises in March and April - driven by conflict in the Middle East, which has impacted fuel supply and caused major supply disruption in the history of the global oil market.

The SPI is a monthly series featuring about 47% of the contributors to the quarterly Consumers Price Index (CPI) - New Zealand's official measure of inflation. The SPI also includes monthly data on things like food, alcoholic beverages and tobacco, rental housing, utilities, transport and accommodation services.

While there's been a monthly decrease, in the 12 months to June 2026, prices for petrol and fuel had increased. Petrol prices were up 23.6% and diesel prices were up 57.1%.

Milk prices have increased every month for the last two years

The latest SPI data shows that food prices have increased 2.5% in the year to June. This follows a 3.2% jump in the 12 months to May.

All food groups recorded price increases between June 2025 and June 2026.

Prices for the meat, poultry, and fish group rose 6.9% and were the largest contributor to the annual increase in food prices. This was followed by restaurant meals and ready-to-eat food, up 3.1% annually.

The largest contributor to the annual increase was also standard 2-litre milk prices, with Statistics New Zealand’s prices and deflators spokesperson Nicola Growden saying: “Annually, milk prices have increased every month for the last two years.”

“In June 2024, the average 2-litre bottle of milk cost $4.00. In June 2026, it cost $5.04.”

Price increases were also recorded for dine-in lunch/brunch, takeaway coffee and porterhouse/sirloin beef.

Price decreases were recorded for tomatoes, fresh eggs and olive oil.

Monthly food prices up 0.6% in June

Food prices were up 0.6% between May and June, with the fruit and vegetables group contributing the most to the monthly increase, up 2.3%. This was followed by the grocery food group, which was up 0.4%.

Tomatoes, boxed chocolates, cucumbers and capsicums were recorded as having price increases, while price decreases were recorded for avocados, chocolate blocks and chicken pieces (excluding chicken breast).

Domestic and international airfares, accommodation

Domestic airfares decreased 4.1% monthly, while international airfares increased 1.2%.

Meanwhile, in the 12 months to June, domestic airfares decreased 2.9%, and international airfares jumped 1.7%.

As for domestic accommodation, this decreased 0.4% monthly while international accommodation was up 9.1%.

In the year to June, domestic accommodation increased by 2% and international accommodation was up 10.4%.

CPI and the Official Cash Rate

Last week, the Official Cash Rate (OCR) was raised from 2.25% to 2.50% in the Reserve Bank's July Monetary Policy Review (MPR), marking the first time since May 2023 the central bank had increased the OCR.

When it came to its decision to hike, the RBNZ noted that although oil prices have fallen, the effects of the oil shock would linger for some time.

“With inflation still above target and economic activity expected to strengthen, some further reduction in monetary stimulus is likely to be required to return inflation to the 2% target midpoint,” the RBNZ said.

In the March quarter, annual inflation, as measured by the CPI, came in at 3.1%, slightly above the RBNZ’s projections of 3%.

The RBNZ is tasked with maintaining inflation between 1% and 3% based on the CPI, specifically targeting 2%. The OCR is its main tool for doing this.

At last week's MPR, the RBNZ lowered its projection for near-term inflation because current oil futures pricing was now significantly lower than previously assumed by the Monetary Policy Committee, with annual headline inflation projected to peak at 3.9% in the June quarter before dropping to 3.3% in the September quarter.

The RBNZ had previously projected in its May Monetary Policy Statement that inflation would reach 4.2% in the June 2026 quarter and peak at 4.3% in the September 2026 quarter.

The OCR will next be reviewed on September 2 and the June quarter CPI is due out on July 21.

Here is the detailed SPI information for June as supplied by Statistics New Zealand: