Ready-to-eat feeds and restaurants push up the cost of eating

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Food prices are 4.8 percent higher than a year ago, according to new figures from Stats NZ.
Photo: 123RF

Food prices are 4.8 percent higher than a year ago, according to new figures from Stats NZ.

The biggest increase was seen in restaurant meals and ready-to eat food, up 7.1 percent between December 2022 and 2023.

Stats NZ consumer prices manager James Mitchell said this was mainly driven by higher prices for dine-in meals and takeaways.

Grocery prices rose 5.4 percent, non-alcoholic beverages 5.5 percent, meat, poultry, and fish prices 2.3 percent, and fruit and vegetables 1.5 percent.

Compared to the month before, December food prices on average were actually down – but only by 0.1 percent.

Stats NZ said the biggest contributor to this fall was non-alcoholic beverages, driven by decreasing prices for fizzy drinks and energy drinks, tomatoes, nectarines and lamb.

A graph showing the change in food prices over the past few years.
Photo: Statistics NZ

In December 2023, 45 percent of items fell in price, while in December 2022, 39 percent did.

“In the last year, five months have shown a price fall,” Mitchell said. “The changes we are seeing in food prices for the last few months are comparable to what we saw prior to 2020.”

When it came to alcohol, prices fell in December 2023 compared with November 2023.

“December usually shows a price fall for alcoholic beverages,” Mitchell said. “All items in this category fell in price, which includes wine, beer, spirits and liqueurs.”