Food prices continue to climb as butter and coffee lead the surge
New Zealanders are feeling the pinch at the supermarket, with food prices rising 3.7% in the 12 months to April 2025, compared to 3.5% in March, Stats NZ has revealed.
The increase was driven primarily by higher costs in the grocery food and non-alcoholic beverages groups, which rose 5.2% and 6.8% respectively.
Stats NZ Spokesperson Nicola Growden said price increases were recorded across all five major food groups. “Price increases were widespread, with all five food groups recording an increase,” she said.
Dairy products led the charge. Butter prices soared 65.3% year-on-year, while cheese rose 24.0% and milk 15.1%. “The average price for 500 grams of butter was $7.42 in April 2025,” said Ms Growden. “That’s nearly $3 more expensive than this time last year.”
Fruit and vegetable prices edged up 0.2% – their first annual increase since January 2024 – while meat, poultry and fish rose 3.6%, and restaurant meals and ready-to-eat food went up by 2.0%.
Instant coffee also became significantly more expensive, with prices rising 21.3% over the past year. “Instant coffee prices have increased $1.44 since this time last year. The average cost is now $8.21 per 100g,” said Ms Growden.
Five ways to cut your grocery bill
- Buy in bulk when items are on special. Look out for deals on non-perishables and freezer-friendly goods.
- Choose home brand or generic options. These often offer similar quality for a much lower price.
- Plan your meals around specials. Check supermarket flyers or apps to build your menu based on discounts.
- Eat more seasonally. Fresh produce is typically cheaper when in season and locally sourced.
- Limit processed and convenience foods. These tend to cost more per serving and don’t always offer better nutrition.