Food prices fell 0.9% in October 2024 compared with the previous month, according to new data from Stats NZ.

The largest contributor to the decline was a 7.2% drop in vegetable prices, partially offset by a 0.6% increase in fruit prices.

Vegetable prices saw significant reductions in tomatoes, cucumbers, and capsicums, helping drive the overall decline.

In contrast, fruit prices were higher due to increases in apples, oranges, and bananas.

“Over the past two years, vegetable prices have dropped by 14.2%, while fruit prices have risen by 8.0%,” said Nicola Growden, a spokesperson for prices and deflators.

"October saw lower prices for a variety of vegetables, but fruit prices were pushed up by higher costs for certain varieties."

Other contributors to the monthly decline included drops in prices for instant coffee, yoghurt, and potato crisps.

However, the decreases were partially offset by price increases in standard 2L milk and fruit juice.

Despite the monthly fall, food prices saw a 1.2% increase over the year to October 2024, matching the rise seen in the 12 months to September 2024.

This annual increase was primarily driven by higher costs for restaurant meals and ready-to-eat food, which were up 3.4%, and a 2.5% rise in grocery food prices.

Restaurant meals, particularly lunch and brunch, takeaway coffees, and takeaway meals, were among the items that saw the largest increases.

Meanwhile, grocery food prices were pushed higher by rising costs for olive oil, butter, and standard 2L milk.

A 500g block of butter now costs an average of $6.67, up over one-third from last year.

A 2L bottle of milk increased by around 9%, averaging $4.21.

Despite these overall increases, the price drop in fruit and vegetables had the most significant impact on food prices.

Fruit and vegetable prices were down 8.9% in the 12 months to October 2024.