Stats NZ said after seasonal adjustment, prices fell 1.1 per cent in July.
In July compared with June, fruit and vegetables prices fell 4.1 percent and overall grocery food prices were down 0.2 per cent.
The latest food price index showed meat, poultry, and fish prices fell 0.3 per cent in the month.
It is only the third time since December 2021 that monthly prices have fallen, compared to price increases for 17 calendar months since then.
Months of previous increases meant the annual inflation statistics were still high, comparable to rates seen in 2008 and 2011, Stats NZ consumer prices manager James Mitchell said.
Stats NZ today said grocery food prices recorded the highest annual jump, rising 11.9 per cent.
Across the year, meat, poultry, and fish prices increased 9.3 per cent.
Kiwi shoppers have been punished at the checkout for much of the year, as many fresh produce and other grocery prices have soared, even though the pace of inflation has mostly slowed since late summer.
Food prices are a major component of the overall inflation the Consumers Price Index measured.
Stats NZ previously said food prices were the largest contributor to the June 2023 annual inflation rate of 6 per cent.
In June, overall food prices were 1.6 per cent higher than in May. Even after adjustment for seasonal fluctuations, that increase was 0.9 per cent.
In the month of June alone, fruit and vegetable prices were up 2 per cent after seasonal adjustment.
