New Zealand Food Inflation Accelerates to 3.2% in May

Annual food inflation in New Zealand eased to 1.9% in July 2026 from 2.5% in June, marking the softest increase since December 2024. The moderation was mainly driven by a fall in fruit and vegetable prices and easing price pressures on grocery food, meat, poultry, and fish. Prices for meat, poultry, and fish increased by 3.2% (vs 6.2% in June), marking the slowest rate since at least June 2025, and remained the largest contributor to the annual increase in food prices. Grocery food prices rose at their slowest pace in three months (1.6% vs 1.9% in June), while fruit and vegetable prices fell 1.0%, reversing a 0.1% rise in June. At the same time, milk, cheese, and egg prices also dropped 0.9%, while oils and fats continued to fall (-6.3% vs -8.5% in June). Meanwhile, inflation for restaurant meals and ready-to-eat food accelerated slightly to 3.2% from 3.1% in June. Monthly, food prices edged up 0.1%, easing from a 0.6% gain in June and marking the softest increase in three months.

Annual food inflation in New Zealand slowed to 2.5% in June 2026 from May's 3.2%, marking the softest increase since February 2025. The moderation was mainly driven by fruit and vegetables, grocery food, and meat, poultry, and fish. Prices for meat, poultry, and fish increased by 6.2% (vs 6.9% in May), marking the slowest rate since at least June 2025, and remained the largest contributor to the annual increase in food prices. This was followed by restaurant meals and ready-to-eat food, which rose 3.1% annually (vs 3.3% in May). Meanwhile, fruit and vegetables inflation eased sharply to 0.1% in June from 2.7% in the previous month. Grocery food prices rose at a slower pace (1.9% vs 2.4% in May) after hitting their highest level in three months in May. At the same time, milk, cheese, and egg prices also moderated to 0.5% from 1.6% in May. By contrast, prices for oils and fats continued to fall (-8.5% vs -8.6% in May). Monthly, food prices rose 0.6% after increasing 1.0% in May.

Annual food inflation in New Zealand accelerated to 3.2% in May 2026 from April’s 14-month low of 2.6%, the first acceleration in three months. The increase was mainly driven by grocery food; meat, poultry, and fish; fruit; and restaurant meals and ready-to-eat food prices. Grocery food prices rose at the fastest pace in three months (2.4% vs 0.7% in April). Meanwhile, prices for meat, poultry, and fish increased by 6.9% (vs 7.8% in April), making the largest contribution to the annual increase in food prices, followed by restaurant meals and ready-to-eat food prices, which rose 3.3% (vs 2.7%). On the other hand, fruit and vegetable prices moderated to a five-month low of 2.7% in May, down from 3.7% in April. Meanwhile, milk, cheese, and egg prices rebounded, rising 1.6% year-on-year in May after falling 0.1% in April. By contrast, prices for oils and fats continued to fall (-8.6% vs -10.3%). On a monthly basis, food prices rose 1.0% after being flat in April.