New Zealand food prices see smallest annual increase in almost 3 years

New Zealand's food prices increased 2.1 percent in the 12 months to February 2024, the smallest increase since May 2021, according to the statistics department Stats NZ on Wednesday.

Lower fruit and vegetable prices are welcome news for New Zealanders who have been doing it tough at the supermarket, said Finance Minister Nicola Willis.

The 2.1 percent increase is noticeably lower when compared with the 12 percent increase in the 12 months to February 2023, Stats NZ said, adding the lower annual increase was due to cheaper fruit and vegetable prices, down 9.3 percent in the 12 months to February 2024.

Cheaper prices for fresh produce such as tomatoes, broccoli, and lettuce drove the decrease in fruit and vegetable prices, said Stats NZ consumer prices manager Will Bell.

"Lower fruit and vegetable prices are a step in the right direction for Kiwi families who have been pulling in their belts to cope with rising prices and rising pressures across the board," Willis said, adding inflation continues to be tracking down in the right direction and people can start feeling more in control of their own finances.

All other broad food groups increased in the 12 months, with restaurant meals and ready-to-eat food prices up 6.7 percent, grocery food prices up 3.9 percent, non-alcoholic beverage prices up 4.3 percent, and meat, poultry, and fish prices up 0.2 percent, statistics show.

"Going out for a meal or grabbing takeaways was more expensive in February 2024," Bell said.

Meanwhile, the cost of accommodation both internationally and domestically has increased in the 12 months to February 2024, he said.

Prices for international accommodation increased 24.5 percent during the period, after a decrease of 6.3 percent in the 12 months to February 2023.

"The cost of staying at accommodation while abroad, is more than 40 percent more expensive than five years ago," Bell said, adding domestic accommodation increased 6.1 percent in the 12 months to February 2024.