Soaring butter prices help drive annual food price increase

Butter, milk, and cheese led the rise in food prices in the year to April 2025, new data shows.

Stats NZ figures released today reveal food prices rose 3.7% annually last month, with increases across all food categories.

"Price increases were widespread, with all five food groups recording an increase."

It follows prices rising by 3.5% in the 12 months to March, by the same measure.

Prices and deflators spokesperson Nicola Growden said dairy products led the increases in the latest data, with the average price for 500 grams of butter hitting $7.42.

"That’s nearly $3 more expensive than this time last year," she said.

Butter prices increased 65.3% in the 12 months to April, while milk and cheese prices increased 15.1% and 24% respectively.

The annual measure used by Stats NZ compares prices in April this year with April last year, indicating how much more expensive items have become over the 12 months.

Butter prices have soared due to global dairy price increases amid other factors.

Higher prices for the grocery food group and the non-alcoholic beverages group contributed most to the annual increase in food prices, up 5.2% and 6.8%, respectively.

The fruit and vegetables group increased in price for the first time since January 2024, with prices up 0.2% in the 12 months to April.

Meanwhile, the increase in the non-alcoholic beverages group was driven by a whopping rise for instant coffee, up 21.3%.

"Instant coffee prices have increased $1.44 since this time last year. The average cost is now $8.21 per 100g," Growden said.