Food prices in New Zealand increased 0.5 percent year-on-year in June of 2019, slowing from a 1.7 percent rise in the previous month. It was the lowest food inflation rate in seven months, mostly due to cost of fruits and vegetables (-8.8 percent vs -1.4 percent in May) and non-alcoholic beverages (-0.8 percent vs 0.7 percent). In contrast, prices advanced further for restaurant meals (3.4 percent vs 3.2 percent); meat, poultry & fish (2.8 percent vs 2.7 percent); and grocery (1.8 percent vs 1.7 percent). On a monthly basis, food prices went down 0.7 percent after a 0.7 percent in the prior month. Food Inflation in New Zealand averaged 5.54 percent from 1961 until 2019, reaching an all time high of 25.20 percent in March of 1980 and a record low of -2 percent in June of 2010.
Food Inflation in New Zealand is expected to be 1.80 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Food Inflation in New Zealand to stand at 1.60 in 12 months time. In the long-term, the New Zealand Food Inflation is projected to trend around 1.70 percent in 2020, according to our econometric models.