New Zealand food inflation is highest in 13 years as vegetable and dairy prices push prices up

Shoppers may be forced to avoid tomatoes, eggs and dairy in New Zealand as the country experiences the biggest annual rise in food prices in 13 years.

Stats NZ has released new figures showing food prices rose 8.3% through August - the biggest annual increase since the global financial crisis July 2009, when food prices jumped 8.4%.

"Higher prices for eggs, yogurt and cheddar cheese were the main grocery food engine,” said Katrina Dewbery, spokeswoman for Stats NZ. Zealand, with core consumer price index (CPI) inflation of 7.3%, when last measured in July.

Fruits and vegetables — particularly psicum, potatoes and onions — jumped 15% last year and were also the main contributor to the monthly rise, influenced by higher prices for tomatoes, peppers and cabbage, Dewberry said.

Grocery prices increased by 8.7% on the year, meat and fish by 7.6% and beverages by 4.1 %. The price of eggs has also skyrocketed, up 6.7% in August alone.

Over the 13 years, tomatoes have risen by 162, 2% - the largest overall price increase - and butter prices rose. up 103%.

Inflation - driven by many factors including the monetary response to Covid-19, global supply chain issues and the Russia's invasion of Ukraine - has led to a crisis cost of living in New Zealand and added to already high food prices.

New Zealand shoppers are faced with some of the most expensive groceries in the OECD. In July 2021, a Commerce Committee investigation into New Zealand's supermarket duopoly found that grocers were making huge profits and charging some of the highest prices in the OECD. The government confirmed in May that it had accepted the commission's 12 recommendations.

The latest figures have prompted the Green Party to ask the government to urgently increase support for people struggling to put food on the table.

"There is no doubt that the current inequality crisis is placing enormous pressure on the ability of many treat yourself to a healthy meal," said Ricardo Menéndez March, Green's consumer and commerce spokesperson.

"There's no reason so that we cannot guarantee that every family can afford the food they need now and in the future."

Menéndez March said income and benefits need to be increased and that government-funded food subsidies need to be improved to become more accessible and meet to rising costs.

Westpac senior economist Satish Ranchhod told the NZ Herald that rising food prices were partly the result of poor growing conditions.

"However, pressure on food prices has been widespread, with shortages of many items around the world, as well as sharp increases in costs production, including fuel, fertilizer and packaging materials," he said.

"We have also seen labor shortages and associated large increases in labor costs."

There was better news for New Zealand exporters, which saw growth of $2.8 billion New Zealanders over the past year to reach record highs.

Stats NZ said the total value of expo rations of powdered milk, butter and cheese increased by 17% in the year ending July 2022, to NZ$18.8 billion.

"Dairy ended the export season strong with continued high prices, especially in the second half of the season," its spokesperson Alasda...