November 22nd, 2024
New Zealanders are grappling with soaring food prices, according to a media release by Stats New Zealand yesterday. The annual increase in food prices, compared to May 2022, has risen across all the broad food categories that Stats NZ measures, due to a variety of factors.
"Increasing prices for fresh eggs, potato chips, and lollies were the largest drivers within grocery food," said James Mitchell, Consumer Prices Manager at Stats NZ. Grocery food prices have surged by 12.7% compared to May 2022.
The second-largest contributor to the annual movement was fruit and vegetables, with an 18.4% increase compared to the previous year. This hike was led by avocados, kūmara, potatoes, and tomatoes.
Restaurant meals and ready-to-eat food prices have also increased, recording an 8.7% jump. Meat, poultry, and fish prices have gone up by 11.7%, and non-alcoholic beverage prices have risen by 11.6%.
"Prices for non-alcoholic beverages such as soft drinks, energy drinks, and bottled water increased 4.5% in May, contributing the most to the overall monthly rise," Mitchell said.
Despite these increasing trends, certain food prices saw a decrease. "Decreasing prices for fruit and vegetables such as tomatoes, mandarins, and kiwifruit mostly offset the non-alcoholic beverages movement," Mitchell added.
In terms of monthly changes, food prices rose 0.3% in May 2023 compared with April 2023. After adjusting for seasonal effects, they were up 0.5%.
This report provides a crucial indicator of the cost of living in New Zealand and can impact future policy decisions, as authorities grapple with balancing economic growth and consumer well-being.