Eggs at nearly $9 a dozen, Kiwis hit hard as food and power prices skyrocket

Food prices in New Zealand have increased by 3.7 per cent in the financial year ending April 2025, according to the latest data from Stats NZ. This rise is mainly due to higher costs of vegetables, meat, and dairy products.

Dairy products were the main contributors to this increase. Butter prices surged by 65.3 per cent, reaching an average of NZ$7.42 for 500 grams, nearly NZ$3 more than the previous year. Cheese prices rose by 24 per cent, and milk by 15.1 per cent.

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Vegetables saw the most significant price hike, with an 11 per cent increase over the past year. Meat, poultry, and fish prices went up by 2.6 per cent, while dairy products rose by 2.4 per cent.

Egg prices have also surged. The average cost of a dozen eggs reached NZD 8.89 in January 2025, up from NZD 8.37 in December 2024. This marks a significant increase compared to previous years.

The grocery food group saw a 5.2 per cent increase, driven by higher prices for dairy items. Non-alcoholic beverages rose by 6.8 per cent, with instant coffee prices climbing 21.3 percent to an average of NZ$8.21 per 100 grams.

The increase in food prices is part of a broader inflation trend in New Zealand. In July 2022, the country's inflation rate reached 7.3 per cent, the highest since 1990. Economists at ANZ Bank have indicated that faster interest rate increases may be necessary to counteract these inflationary pressures.

In non-food items, electricity prices increased by 2.3 per cent in April compared to March, while gas prices rose by 1.1 per cent. Airfares also saw significant hikes; international flights increased by 24.7 per cent, and domestic fares by 3.8 per cent, influenced by school holidays and consecutive long weekends.

Rising food costs are putting pressure on household budgets, especially for low-income families. Many are finding it harder to afford basic groceries.

Experts suggest that global factors, such as supply chain disruptions and increased production costs, contribute to the rise in food prices. Additionally, local weather events have affected crop yields, leading to shortages and higher prices.