The latest data from Stats NZ shows a modest increase of 0.7 percent in food prices over the 12 months leading up to March 2024, marking the smallest increase since April 2021 and a notable slowdown in the rate of inflation.
The small increase is due largely to a substantial decrease in fruit and vegetable prices which plummeted by 13.3 percent in the 12 months to March 2024.
"The annual decrease in fruit and vegetable prices was the largest recorded since the series began in 1999," Stats NZ consumer prices manager James Mitchell said.
"This was driven by cheaper prices for tomatoes, lettuce and avocados."
The food price index's 0.7 percent uptick follows a 2.1 percent increase in the preceding 12-month period to February and represents a significant drop from the 12.1 percent surge recorded a year earlier in the 12 months to March 2023.
While the average costs for fruit and vegetables have dropped dramatically over the past 12 months, all other broad food groups increased over the same period.
"Visiting a café or restaurant, or getting takeaways was more expensive in March 2024," Mitchell said.
"The cost of buying a box of beer bought off license was 10 percent more expensive than a year ago, while a pint of beer at a bar or restaurant was 6 percent more expensive."
Month-on-month, food prices fell by 0.5 percent in March compared to February, driven by cheaper prices for kūmara, apples and grapes as well as lamb, beef steaks and bacon.
