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Otago Daily Times
15-05-2025
- Business
- Otago Daily Times
Food prices rise at fastest rate in over a year
Butter is among the biggest risers in price according to latest increases. PHOTO: GETTY IMAGES Food prices have risen at their fastest pace in more than a year driven by more expensive dairy products, and hinting that inflation pressures are gathering pace. Stats NZ said the food price index rose 3.7% in the 12 months ended April, the highest since January last year. "Price increases were widespread, with all five food groups recording an increase," spokesperson Nicola Growden said. Groceries were a key part of the overall rise, increasing 5.2% over the past year, because of large increases for butter, milk, cheese, and coffee. The price of butter increased 65%, cheese was up 24%, and milk 15%. "The average price for 500g of butter was $7.42 in April 2025. That's nearly $3 more expensive than this time last year," Growden said. World dairy prices have been surging amid increased demand and reduced supply, thus pushing up domestic costs. Similarly, global prices for coffee have been pushed higher because of disease and bad weather in key producing countries. A 100g pack of instant coffee had increased more than 17% in the past year. Stats NZ said airfares, energy costs, and rents were all up last month offsetting cheaper fuel and accommodation. ASB senior economist Mark Smith said the monthly price indicators were volatile but pointed to building pockets of inflation pressures. "Annual CPI inflation will likely remain parked towards the upper part of the 1-3% target range for much of 2025. While this is unlikely to prevent official cash rate cuts, the RBNZ will be somewhat cautious." The RBNZ is widely expected to cut the cash rate by 25 basis points to 3.25% at its next monetary statement in two weeks.
NZ Herald
15-05-2025
- Business
- NZ Herald
Butter prices soar 65%, driving food cost higher, new data shows
But price increases were widespread, with all five food groups recording an increase, prices and deflators, spokeswoman Nicola Growden said. 'Price increases for dairy products led the increases for April 2025,' Growden said. 'The average price for 500g of butter was $7.42 in April 2025. That's nearly $3 more expensive than this time last year,' Growden said. The increase in the non-alcoholic beverages group was driven by higher prices for instant coffee, up 21.3% in the 12 months to April 2025. 'Instant coffee prices have increased $1.44 since this time last year. The average cost is now $8.21 per 100g,' Growden said. Stats NZ's selected price indexes provide a monthly update on 46.5% of the goods and services in the total consumers price index (which is released quarterly). It includes food, rent, travel and – for the first time this month – electricity prices. Electricity prices increased 2.3% in April 2025 compared with March 2025, while gas prices increased 1.1%. Prices for international airfares increased 24.7% in April 2025 compared with March 2025, while prices for domestic airfares increased 3.8%. 'The more expensive air travel costs coincided with school holidays and consecutive long weekends throughout April,' Growden said. The increase in international airfares was driven by higher prices for flights to the Pacific Islands, Australia and Asia. Rents rose 0.2% on a monthly basis and were up 3% annually, based on the stock measure. The stock measure shows rental price changes across the whole rental population, including renters currently in tenancies. 'Selected Price Indexes (SPI) for April came in a touch stronger than our expectation,' said ANZ senior economist Miles Workman. It was up 0.9% stronger ( month on month) than the flat read ANZ had pencilled in. 'But much of the surprise came from the volatile components,' he said.
