Foodstuffs NZ reported that winter weather drove up vegetable prices, while olive oil prices continued to fall due to improved global supply.
New data from Stats NZ shows annual food price inflation (FPI) hit 5.0 per cent last month, closely mirrored by a 5.1 per cent year-on-year increase across Foodstuffs’ comparable retail basket.
The grocery co-operative cited weather conditions as a key factor, with green cabbage and broccoli prices up 78 per cent and 76 per cent, respectively, compared to August last year. In contrast, orange kumara and green kiwifruit were more affordable, down 15 per cent and 12 per cent year-on-year.
“This winter has certainly knocked the leafy greens and brassicas around, with green cabbages the priciest they’ve been in years, even rivalling cauliflower at up to $8,” said Foodstuffs NZ MD Chris Quin. “Our produce specialists say they’re all now growing more quickly as the soil warms up and light levels increase.”
Meanwhile, olive oil prices dropped for a third consecutive month, falling 22 per cent year-on-year as European supply rebounded. Canned tuna also fell 10 per cent, offering some relief at the checkout.
Foodstuffs said just seven products accounted for nearly half of its FPI basket’s inflation: butter, cheese, beef steak, lamb roasts and chops, and boxed and drinking chocolate, categories still facing tight global supply and strong demand.
Promotional timing also impacted year-on-year comparisons, with Pak’nSave’s “Stickman’s Birthday” campaign running in July 2025, versus August 2024.
Supplier cost pressures remained elevated, with Foodstuffs noting a 5.5 per cent year-on-year increase last month, the sharpest since January 2024.
Looking ahead, Quin said the co-ops will maintain their focus on procurement discipline and operational efficiency as global food inflation continues to trend upward.
He pointed out that food inflation in the UK has risen from 2-3 per cent earlier this year to around 4-5 per cent now, and that most OECD countries are also experiencing faster increases in food prices compared to the beginning of the year.
