Once again higher prices for milk, cheese, and butter were the main drivers behind an increase in food prices, which rose 5% in the 12 months to August.
The data, released by Stats NZ, showed the second consecutive 5% increase in annual prices, following the same figure in the 12 months to July.
The biggest contributor to the most recent increase was items in the grocery food group, which rose 4.7%,
“The price increase for the grocery food group was due to higher prices for milk, cheese, and butter,” Stats NZ said.
The price of two litres of milk rose 16.3% annually to $4.72. Cheese was $12.89 for a one-kilogram block, up 26.2% annually. Butter was up 31.8% annually to $8.58 per 500 grams.
Stats NZ said the average prices for milk, cheese, and butter represented the cheapest available option for each.
“Dairy products continue to be the main driver for the higher annual food prices,” Stats NZ prices and deflators spokesperson Nicola Growden said.
“The price of two litres of milk has increased by 88 cents since December 2023.”
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The next largest contributor to the increase was the meat, poultry and fish group – up 8.1% in the 12 months to August.
Higher prices for beef steak, beef mince, and lamb leg drove the increase.
“The average price for beef mince was $22.53 per kilo in August 2025, that’s an increase of $3.40 in just one year,” Growden said.
Other food groups that saw increases were fruit and vegetables (up 8.9%), restaurant meals and ready-to-eat food (up 2.4%), and non-alcoholic beverages (up 3.9%).
Stats NZ also released data on rent prices, which rose 2.1% in the 12 months to August 2025.
This followed a 2.4% increase in the 12 months to July.
“The last time annual rent price increases were under 2.1% was March 2011,” Growden said.
