Highest annual food price increase in over 10 years

Te Whanganui-a-Tara - Food prices were 7.6 percent higher in March 2022 compared with March 2021, Stats NZ said today.

This was the largest increase since the year ended July 2011 when prices increased 7.9 percent, partly influenced by a GST increase from 12.5 percent to 15 percent in October 2010.

Food price increases were widespread in the year ended March 2022 with increases in all categories that StatsNZ measures:

• grocery food prices increased 6.7 percent

• fruit and vegetable prices increased 18 percent

• restaurant meals and ready-to-eat food prices increased 5.1 percent

• meat, poultry, and fish prices increased 8.7 percent

• non-alcoholic beverage prices increased 2.7 percent.

Average prices for vegetables like tomatoes, broccoli, iceberg lettuce, and cabbage were notably higher than they were in March 2020 and 2021.

Food prices were 7.6 percent higher in March 2022 compared with March 2021, Stats NZ says.

This was the largest increase since the year ended July 2011 when prices increased 7.9 percent, partly influenced by a GST increase from 12.5 percent to 15 percent in October 2010.

 There were also higher prices for dairy products like two-litre bottles of standard milk and one-kilo blocks of mild cheese.

These increases were partly offset by decreasing prices for avocados, boxed chocolates, and bacon.

Monthly food prices rose 0.7 percent in March 2022 compared with February 2022.

After removing regular seasonal impacts, food prices rose 0.4 percent. This means that the price increase in the unadjusted series was greater than the expected seasonal increase from February to March.

Grocery food prices were the main contributor to the rise in March, up 0.9 percent. This was mainly influenced by higher prices for yoghurt, canned spaghetti, chilled meat pies, and tomato sauce.

Fruit and vegetable prices rose 1.2 percent in March 2022 compared with February 2022, influenced by higher prices for cabbage, tomatoes, strawberries, and kumara.

The average price of cabbage increased 28 percent in March, from $3.92 to $5.03 per kilogram.

Meat, poultry, and fish (up 0.9 percent), non-alcoholic beverages (up 0.9 percent), and restaurant meals and ready-to-eat food (up 0.3 percent) also contributed to the rise in March.