New Zealand’s food prices have shot up by 5 percent over the past year ending August 2025, matching the rise seen in July, according to the latest data from Stats NZ. This surge is hitting wallets hard, especially in the grocery section.
Dairy products are leading the charge behind these higher food prices in New Zealand. The cost of 2 liters of the cheapest milk jumped 16.3 percent to 4.72 New Zealand dollars (about 2.81 US dollars). Cheese prices soared even more, climbing 26.2 percent, while butter increased by a whopping 31.8 percent. “Dairy continues to drive up annual food prices,” said Nicola Growden, Stats NZ’s prices and deflators spokesperson. She added that milk prices have risen by 88 cents since December 2023.
Meat, poultry, and fish followed closely, with prices up 8.1 percent year-on-year. Beef steak, beef mince, and lamb leg saw the biggest hikes in this category.
On a brighter note, national rent prices in New Zealand only rose 2.1 percent in the year to August—the smallest annual increase since March 2011, Stats NZ reports.
Shifting to retail sales, New Zealand’s overall retail volume grew by 0.5 percent in the June 2025 quarter compared to the previous one. This boost came from stronger sales in electrical and electronic goods, supermarkets and groceries, pharmaceutical stores, and department stores, explained Michelle Feyen, Stats NZ’s economic indicators spokesperson.
However, not everywhere felt the gains. Retail sales dipped in most regions, with the North Island seeing a 0.3 percent drop. The South Island bucked the trend with a small 0.2 percent rise. Looking back further, from June 2022 to June 2025, the South Island’s retail sales have grown much faster than the North Island’s, Feyen noted.
These trends highlight ongoing challenges in New Zealand’s economy, from rising food costs to uneven retail recovery.
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