Foodstuffs data has shown that annual food price inflation across the co-ops’ comparable FPI basket eased to 1.2 percent in July, the lowest annual increase since December 2024.
Stats NZ reported an annual FPI rate of 1.9 percent for July 2026, following the annual CPI of 4.1 percent in the June quarter, with fuel and electricity among the major contributors to broader household inflation.
Foodstuffs NZ Managing Director, Chris Quin, said the latest food price data was encouraging at a time when New Zealand households were still facing cost pressures across other parts of their budgets.
“July’s numbers show food price inflation continuing to ease in our comparable basket, with good value across a range of fresh produce and some pantry staples. Broccoli, cabbage, pears, mandarins and olive oil were all cheaper than a year ago,” said Quin.
Some of the biggest year-on-year price drops included tomatoes (down 28.3 percent), cabbage (-21.8 percent), lettuce (-17.8 percent), green beans (-15.9 percent), pears (-15.4 percent), eggs (-15.1 percent), broccoli (-14.9 percent), olive oil (-13.8 percent), apples (-8.3 percent) and mandarins (-8.0 percent).
Products tracking higher were potatoes (up 44.8 percent), dried apricots (+41.8 percent), green kiwifruit (+34.4 percent), brown onions (+33.4 percent), white bread (+26.8 percent) and avocados (+22.8 percent).
Quin said produce prices were shaped by supply and demand across the market, including overseas demand and weather impacts. While potatoes and onions were particularly good buys at this time last year, supply has tightened, and prices have moved back toward longer-term averages.
He added that produce supply was generally steady through July, but recent frosts and cold snaps have slowed growth in some lines, with tighter supply of some greens, which can mean a bit more week-to-week volatility.
Early asparagus has also started to arrive ahead of the main New Zealand season, which typically runs from September through to December, which Quin said was one of the first signs that spring wasn't too far away.
Meat, poultry and fish have remained the main contributors to the annual increase in the Foodstuffs basket, although the rate of price increases eased in July. Beef and lamb prices are likely to remain elevated for the foreseeable future due to international demand, with chicken offering a better-value protein option.
While not a major factor in July’s result, Quin mentioned the co-ops have continued to manage supply chain challenges, including fuel and freight cost volatility, port delays, and capacity constraints for goods coming from Asia.
“Having scale through the co-op model helps navigate and deal with those pressures. And, while supplier costs remain higher than a year ago, the sourcing and supply chain efficiencies offered by Foodstuffs enable independently-owned local stores to deliver greater choice and value for their customers around the country.”
Supplier costs for products in the co-ops’ comparable FPI basket rose an average 2.7 percent year-on-year in July.
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