Milk, butter, beef helps drive food price increase

Food prices continue to increase, with milk, butter and beef mince and steak contributing to the rise, according to new numbers from Stats NZ.

Food prices increased 4.6% in the 12 months to June 2025. It followed a 4.4% increase in the 12 months to May.

Higher prices for grocery items (up 4.7%) and meat, poultry, and fish products (up 6.4%) contributed most to the increase.

The increase in grocery prices was driven by higher prices for milk, butter and cheese.

“Dairy products continue to drive the higher cost in food prices,” Stats NZ prices and deflators spokesperson Nicola Growden said.

In the 12 months to June, milk was up 14.3% annually at $4.57 per two litres, butter was up 46.5% annually at $8.60 per 500 grams, and cheese was up 30% annually at $13.04 per 1 kilogram block.

“Butter prices are nearly five dollars more expensive than 10 years ago, an increase of over 120%,” Growden said.

The increase in the meat, poultry, and fish group was pushed by higher prices for beef steak (up 22.3%) and beef mince (up 15.6%).

Growden said the average cost for 1kg of beef mince was $21.73 in June, up from $18.80 a year ago.

Food prices up monthly

Compared to May of this year, food prices in June increased by 1.2%. This followed a 0.5% rise in May 2025 compared to April.

Higher prices for fruit and vegetables (up 5%) and grocery items (up 0.8%) drove the increase.

“More expensive tomatoes, capsicum, and broccoli drove the increase for fruit and vegetables, while higher prices for boxed chocolates and eggs drove the increase for grocery foods,” Stats NZ said.

Rents also experienced an annual increase

Alongside numbers on food prices, Stats NZ also released data on rent prices.

Rents increased 2.6% in the 12 months to June 2025. This followed a 2.8% increase in the 12 months to May 2025.

The increase was the second lowest since October 2011, when rent prices increased 2.5%.