Food price pain: Butter skyrockets and the cost of instant coffee is hard to swallow too

Thursday, 15 May 2025

Food prices increased 3.7 per cent in the 12 months to April, according to new figures released by Stats NZ. The increase follows a 3.5 per cent rise in the year to March 2025.

Higher prices in the grocery food and non-alcoholic beverages groups were the biggest contributors to the annual increase, with prices in those categories up 5.2 per cent and 6.8 per cent respectively.

“Price increases were widespread, with all five food groups recording an increase,” prices and deflators spokesperson Nicola Growden said.

The fruit and vegetables group recorded a price rise for the first time since January 2024, increasing 0.2 per cent in the year to April 2025.

Dairy products drive rise, butter up 65.3%

Within the grocery food category, the rise was driven by dairy products. “Price increases for dairy products led the increases for April 2025,” Growden said.

Milk and cheese prices increased 15.1 per cent and 24 per cent respectively over the year, while butter prices surged 65.3 per cent.

“The average price for 500 grams of butter was $7.42 in April 2025. That’s nearly $3 more expensive than this time last year,” Growden said.

In the non-alcoholic beverages group, instant coffee was a key driver, up 21.3 per cent over the year.

“Instant coffee prices have increased $1.44 since this time last year. The average cost is now $8.21 per 100g,” Growden said.

Electricity and gas prices are now being published as part of the selected price indexes release from April 2025, covering 46.5 per cent of the consumers price index basket.

Electricity prices rose 2.3 per cent and gas prices 1.1 per cent in April compared with March.

Long weekends, school holidays see International airfares surge

International airfares also rose 24.7 per cent in April compared with the previous month, while domestic airfares increased 3.8 per cent.

“The more expensive air travel costs coincided with school holidays and consecutive long weekends throughout April,” Growden said.

Flights to the Pacific Islands, Australia and Asia were behind the international airfare rise.