Supermarkets say groceries are actually cheaper here than in Australia and UK
Friday, 16 May 2025
Foodstuffs has claimed they are cheapest in the latest international grocery price comparison across New Zealand, Australia and the UK.
Pak’nSave North Island has reportedly been the one to come out on top “once again”.
Foodstuffs said that the most recent data showed New Zealand “still delivers lowest grocery prices in benchmark against UK and Australia”.
The updated figures compiled by Foodstuffs North Island used data provided by NielsenIQ.
How did the prices look?
FoodStuffs said the results of the four week average basket prices ending on May 1were Pak’nSave North Island at $93.94, Woolworths NZ (North Island) $104.30, Aldi Australia $100.23, Tesco UK $108.63, Woolworths Australia – $117.37.
What was in the baskets?
Foodstuffs said the analysis compared 20 top-selling grocery items which were carefully matched across markets for “pack size and product type and adjusted for tax and exchange rates to ensure a level playing field”.
The basket included core staples most Kiwi households buy each week like dairy essentials butter, milk, fresh cream and edam cheese.
What did Foodstuffs say?
Chris Quin, CEO of Foodstuffs North Island, said the results challenge the idea that New Zealand groceries were ‘unreasonably expensive’.
“There’s a lot of noise about food prices right now - and we understand why it matters. This data tells us something important: New Zealand grocery prices - particularly at PAK’nSAVE - are competitive by global standards.”
Is GST taken into account?
In a separate report released on Friday Woolworths New Zealand New Zealand food prices were cheaper than overseas when GST and other taxes were taken into account.
Woolworths said all groceries included a 15% goods and services tax (GST), which the company collects for the government.
“That is different to many other countries, including the UK and Australia, where most grocery items do not include GST/VAT.”
Woolworths NZ said the cost of a basket of 20 common household items in New Zealand, Australia and the UK the impact of different taxes is visible.
“If New Zealand matched the GST/VAT exemptions in the UK and Australia then New Zealanders’ grocery prices for that basket would be 10% lower.
“Ultimately, once GST/VAT is accounted for, Kiwi shoppers pay less for the same basket of goods than shoppers in the UK and Australia.“
The Post reported that the 20 items in the Woolworths survey were white flour, canned tomatoes, full cream milk, Royal Gala apples, carrots, beef mince, Weetbix, tea bags, white sandwich bread, full-fat block cheese, frozen peas, penne pasta, white sugar, salted butter, toothpaste, dishwashing detergent, shampoo, hand soap, toilet paper, and rubbish bags.
Last year a report by Edith Cowan University in Western Australia found New Zealand groceries were more expensive that from leading supermarkets in New Zealand, Australia, Ireland and the UK.
New Zealand topped the list for having the most expensive groceries with a basket, or the sum of all 44 items tracked in the research, costing between NZ$374 to NZ$448.
The items included apples, bananas, chicken, chocolate, rice, nappies and other basic household goods.
Australia had the second most expensive groceries, with a basket costing NZ$355 to NZ$363.
Ireland came third with costs ranging from NZ$343 to NZ$378, and the UK had the cheapest groceries, with a basket costing between NZ$310 to NZ$325.
When adjusted for wages Australia shifted up one place to have the second cheapest groceries, but New Zealand was still the most expensive.