New Zealanders are now paying some of the world's highest prices for basic foods such as milk, chicken and eggs.

Diners are facing worsening service as staffing is cut to compensate for rising restaurant costs.

The price of butter and cheese will drop next month in line with falling international dairy prices - but milk will stay the same.

As if oil prices weren't enough to worry about, instant noodles are being blamed for an impending edible oil shock.

New Zealand is a victim of its own success - and right now shoppers are paying the price, commentators say.

Imagine, by some clever sleight of hand, dairy monopoly Fonterra artificially inflated the price it pays to farmers.

Consumer prices have jumped further since the most recent official statistics were published in January, the Herald on Sunday finds.

Food is tipped to become up to 10 per cent more expensive than it was a year ago.