FX.co ★ New Zealand Food Price Inflation Weakest Since 2021

The rate of increase in New Zealand's food price inflation was reported to be the lowest since May 2021, according to Wednesday's data published by Stats NZ. This was largely attributed to falling prices in fruits and vegetables.

February saw a year-on-year rise of just 2.1% in food prices, a significant drop from January's 4.2% increase. This marked the smallest increase since May of the previous year.

As per Will Bell, Stats NZ's Consumer Prices Manager, "The reduced prices for fresh produce such as tomatoes, broccoli, and lettuce significantly contributed to the decline in fruit and vegetable prices."

He further added, "Eating out or procuring takeout food had become pricier in February 2024."

From January to February, there was a decrease in food prices by 0.6%, in stark contrast to the uptick of 1.2% in January.

The cost of fruits and vegetables saw a notable drop by 9.3% in comparison to the year before. However, all other primary food groups witnessed an increase in February.

Moreover, data also illustrated that international accommodation expenses saw a remarkable jump by 24.5%, while domestic accommodation witnessed a hike of 6.1%.