Food price dip in February fuelled by fruit and veges but butter prices shoot up

Food prices fell by 0.5% in February, but annually they are still up by 2.4%. Photo / 123rf

Food prices fell in February, driven by changes in the price of fruit and vegetables. Annually, however, prices remain higher.

According to the latest Stats NZ Selected Price Index, monthly food prices decreased by 0.5% in February compared with a 1.9% monthly increase in January.

But on an annual basis, food prices were 2.4 % higher than in February 2024.

Cheese prices rose by 8% in the month and butter prices rose by 7.8%.

Stats NZ’s prices and deflators spokeswoman Nicola Growden said prices for seasonal fresh produce were cheaper in February.

“Specials for Valentine’s Day also contributed to lower food prices, with boxed chocolate prices down about 26% in the month,” Growden said.

Monthly fruit and vegetable prices fell by 3.6% compared with January, and were down 6.2% compared to February 2024, the only food group to record lower prices compared to 2024.

Apples and broccoli had the largest monthly price shifts, with their weighted average retail price down by 25.7% and 28.4% respectively.

Grocery prices fell by 0.2% for the month, with prices for cheese and butter having the largest monthly change.

Annually, grocery prices were 4.3% higher compared to the same time last year, with dairy products especially higher.

Butter prices were 63.4% higher compared to February 2024.

The average price for 2 litres of milk was $4.55 in February 2025, up from $3.94 in February 2024, according to Stats NZ.

Monthly meat, poultry and fish prices rose 0.6% in February, while non-alcoholic beverages were down by 0.7%.

Restaurant meals and ready-to-eat food prices were up for the month, increasing slightly by 0.1%.

Alcohol and tobacco monthly prices grew slightly in February, with both up by 0.1%.

Chicken prices were up 1.4% month-on-month. Photo / Fresh Media

Monthly petrol prices fell in February, dropping by 0.2%.

Monthly diesel prices were unchanged. Annually, diesel prices were down by 7.6%.

Domestic and international air travel monthly prices fell, dropping 3.6% and 14.6% respectively.

International airfare prices were down 5.0% in the 12 months to February 2025.

“Getting to your overseas destination was cheaper than this time last year, while the cost of staying there was more expensive,” Growden said.

Domestic accommodation service prices fell 3.0% in February but international accommodation services increased 5.4%.

Rental data has again been delayed as the dataset used to compile the information for the month is incomplete, with StatsNZ not confident the measure will meet customer expectations.

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