Food prices across New Zealand saw a significant rise of 1.9 percent in January 2025, marking the largest monthly increase since July 2022.

The increase follows a smaller 0.1 percent rise in December 2024, according to the latest figures from Stats NZ.

Of the items in the food basket, around 65 percent were more expensive in January, a notable jump from the average of 54 percent per month in 2024.

"The proportion of the food basket that increased by over 5 percent in price was the highest in five years," said Nicola Growden, prices and deflators spokesperson at Stats NZ.

One of the biggest contributors to the price surge was higher grocery costs, with boxed chocolates, milk, and chocolate blocks seeing substantial increases.

In particular, the price of a 2-litre bottle of milk rose to $4.54, compared to $3.93 in January 2024.

The cost of a 250g block of chocolate also increased, reaching $5.72 from $4.90 last year.

In addition, fruit and vegetable prices climbed by 2.8 percent, further driving the overall food price rise.

However, when adjusted for seasonal effects, fruit and vegetable prices were slightly lower, down 0.6 percent.

Growden explained that January typically sees price hikes in fruit and vegetables, and this year out-of-season produce like broccoli, kiwifruit, and apples were the main contributors.

Another factor influencing price rises was the excise duty tax increase, which came into effect on January 1, 2025.

Alcoholic beverages and tobacco prices climbed 2.4 percent, driven primarily by higher prices for cigarettes and tobacco.

"The new tobacco excise tax has driven tobacco prices up," Growden added.

These rising food and drink costs are likely to put further pressure on household budgets as inflation continues to affect everyday expenses.

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