Butter prices hit a record: 500g at least $5

Food prices rose in June led by higher prices for avocados and soft drinks.

Butter prices also hit an all-time high. Butter prices in June surpassed last month's highest-ever level ($4.80); a 500g block of the cheapest available butter cost $5.05 in June 2017, compared with $3.38 in June 2016.

The average price for a 200g avocado was $4.52 in June 2017, compared with $3.38 in May 2017.

"Avocado prices tend to peak in the winter before falling in spring as new fruit become available," consumer prices manager Matthew Haigh said. "Prices are back near the record level in June last year."

"Fruit and vegetables prices eased off somewhat in June, from their highs in May," Haigh said. "Lettuce and broccoli prices were down, but tomato and kumara prices continued to rise. Kumara prices were at their highest-ever level - $8.18 a kilogram."

A wet autumn pushed up vegetable prices to high levels in May.

Modest fruit and vegetable falls didn't slow annual price increases.

Despite a monthly fall of 0.4 per cent for fresh fruit and vegetables, annual vegetable prices kept food prices rising in the year ended June 2017. Overall, food prices increased 3 per cent in the year.

Vegetable prices increased 18 per cent in the year ended June 2017, led by higher prices for tomatoes, kumara and lettuce.

The average price for 1kg of tomatoes was $8.69 in June 2017, compared with $6.77 in June 2016. Tomatoes are typically more expensive in winter, often going above $10 a kg.

Grocery food prices rose 2.1 per cent in the year to June 2017, led by higher prices for dairy products.

Spending on grocery food such as dairy, bread, and cereals makes up about $35 of every $100 spent on food, compared with $15 for fruit and vegetables.

Because the annual increase for grocery food was much lower than fruit and vegetables, the overall increase in food prices was just 3 per cent.