Food prices rose in December as spikes in the price of butter, standard 2-litre milk, and olive oil pushed grocery prices upwards. 

In Stats NZ’s latest Selected Price Index, food prices increased by 1.5% in the 12 months to December 2024, up from a 1.3% rise in November. 

Fruit and vegetable prices were up 3.1% compared to November. 

Restaurant meals and ready-to-eat food were up 0.1% in the month, for a 3.3% annual increase. 

“The price for a 500g block of butter has increased by about 50% since this time last year, with an average price of $6.66,” Stats NZ spokesperson Nicola Growden said. 

“The same size block of butter had an average price of $4.48 in December 2023.” 

The price of butter has topped $9 for a 500g block in some shops and one analyst is warning prices could stay high for months because of global butter supply shortages. 

ANZ agricultural economist Susan Kilsby said butter prices had lifted by 24% over the past year in the global markets. 

“Demand for cream [which is used to make butter] does tend to peak over the Christmas holiday period which tightens supply available for butter,” Kilsby said. 

Grocery food prices overall did fall monthly by 0.2%, but registered an annual 2.7% price increase. 

Meat, poultry and fish prices fell by 0.6%, while non-alcoholic beverages fell by 1.4%, with coffee, tea and hot drink prices increasing by 2.5% in December. 

Prices for alcoholic beverages and tobacco fell by 0.6%. 

Petrol prices were up 1.5% in December, with diesel also increasing, up 2.6%. 

Non-alcoholic drinks and tobacco registered the biggest annual price increases, at 5.1% and 7.5% respectively. 

International air transport prices significantly increased in December growing by 29.6%, likely because of the seasonal holiday bump. 

In accommodation, the price of domestic services fell by 1.7% in December. 

International accommodation services fell by 5.6%. 

Rental data has been delayed due to changes within the Ministry of Business, Innovation and Employment which recently completed upgrades to its tenancy bond-lodgement system. 

Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.