NZ Food Prices Hit Record Highs Amid Global Demand and Rising Costs
New Zealanders are facing record-high food prices, with essential items increasing in cost at twice the rate of wage growth over the past decade. According to Stats NZ data, fresh fish has reached an average price of $49.62 per kilogram, lamb chops at $24.23 per kilogram, and fried chicken at $17.12 for five pieces.
Westpac senior economist Satish Ranchhod notes that food prices tend to rise over time, but the significant increases in staples such as butter (up 157% since 2016) and eggs (125%) compared to wage growth are notable. He attributes these price hikes to strong global demand for protein and increasing production costs.
Despite a slight slowdown in food-price inflation to 1.9%, experts caution that prices will continue to rise due to ongoing high fuel costs, transportation, and packaging expenses. Simplicity chief economist Shamubeel Eaqub warns that consumers should not expect food prices to fall, stating 'the rate of growth might slow, but it will still be growing.'