Increase in Dairy Prices Contributes to Annual Food Inflation Rise

The annual food inflation rate in New Zealand has risen to 4.7% for the year ending in October, up from 4.1% the previous month, according to Stats NZ. The increase is largely attributed to higher grocery prices, with dairy products, eggs, and instant coffee seeing a combined rise of 4.9% over the year.

Despite an overall monthly decrease in prices due to more abundant fruit and vegetables, the annual figures reflect a significant increase in the cost of staple groceries. Meat prices have also seen an uptick, contributing further to the inflation rate.

Other sectors have experienced varying price changes, with power, gas, fuel, and accommodation costs rising, while airfares have decreased. These fluctuations highlight the diverse factors influencing the overall inflation rate in the country.