Wellington, Dec 16 (IANS) New Zealand's food prices rose 4.4 per cent in the year to November 2025, following a 4.7 per cent increase in the 12 months to October 2025, Stats NZ reported Tuesday.
Higher grocery prices, up 4.6 per cent, drove the annual rise, followed by meat, poultry, and fish, which climbed 7.7 per cent annually, said the Statistics Department.
The average price of a two-litre bottle of milk rose 15.8 per cent annually, while sirloin beef steak surged 26.7 per cent, and white loaf bread jumped 53.2 per cent annually, it said, Xinhua News Agency reported.
"Bread is a staple food for many households. It now costs 74 cents more for a loaf of white bread than this time last year," Stats NZ spokesperson Nicola Growden said.
On a monthly basis, food prices fell 0.4 per cent in November, led by a 4.5 per cent drop in fruit and vegetables as seasonal produce such as tomatoes and strawberries became cheaper, statistics showed.
Earlier in November, New Zealand's central bank cut its benchmark interest rate by 25 basis points to 2.25 per cent, taking the Official Cash Rate (OCR) to a three-year low to support economic recovery.
Annual consumer price inflation increased to 3 per cent in the September quarter but is expected to fall to around 2 per cent by mid‑2026 as spare capacity in the economy absorbs price pressures, the Reserve Bank of New Zealand said in a statement.
The cut was the ninth reduction since rates peaked at 5.5 per cent in July 2024. Future moves in the OCR will depend on how the outlook for medium-term inflation and the economy evolves, it said.
The central bank noted that economic activity was weak over mid-2025 but is now picking up, adding that lower interest rates are encouraging household spending, and a falling exchange rate is supporting export incomes.
Global economic growth has benefited from strong artificial intelligence-related investment but is expected to slow in 2026 as trade barriers weigh on activity, the statement said.
Risks to the inflation outlook are balanced, it said, adding that greater caution on the part of households and businesses could slow the pace of New Zealand's economic recovery.
"Alternatively, the recovery could be faster and stronger than expected if domestic demand proves more responsive to lower interest rates," the statement said.
"New Zealanders have had a tough few years, but things are looking up," said Finance Minister Nicola Willis, adding thousands of Kiwis are taking the opportunity presented by lower rates to buy their first homes.
--IANS
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