Food prices have risen sharply in the biggest annual increase in 32 years.
Prices jumped 1.1 per cent in December and were 11.3 percent higher than the same month last year.
Fruit and vegetable prices increased by 23 per cent year-on-year.
The annual increase Stats NZ recorded was due to rises across all the broad food categories measured.
Grocery food prices were up 11 per cent, fruit and vegetable prices up 23 percent, and restaurant meals and ready-to-eat food 7.8 percent.
Meat, poultry, and fish prices jumped 11 per cent, and non-alcoholic beverage prices by 7.3 percent.
“Increasing prices for cheddar cheese, barn or cage-raised eggs, and potato chips were the largest drivers within grocery food,” Stats NZ consumer prices manager James Mitchell said.
The December data follows some major events for food prices in recent months.
In November, the annual food price increase has reached a 14-year high of 10.1 per cent.
The price data was also released amid a landscape of concerns about inflation and a possible economic slowdown this year.
Economists at ASB said inflation should start cooling off, but consumers still faced a tough year ahead.
“Food price rises remain ingrained, and it appears consumers are cutting back where they can.”
The bank said poor weather likely contributed to sharp rises for fruit, up 4.8 per cent month-on-month, and for vegetable prices, which jumped 6.6 per cent in one month.
“Price rises were elevated despite December being a month when more pre-Christmas discounting takes place,” ASB added.
“It is our hope that annual food price inflation has peaked, or is close to it, given lower global food commodity prices of late.”
But the economists added: “The risk is that the current upward momentum in food prices takes longer to slow.”
