Statistics New Zealand consumer prices manager Matthew Haigh said the food price rise was led by higher prices for avocados and soft drinks. The average price for a 200g avocado was $4.52 in June, compared with $3.38 in May 2017.
"Avocado prices tend to peak in the winter before falling in spring, as new fruit become available.
"Prices are back near the record level in June last year," Mr Haigh said in a statement yesterday.
In May last year people were paying $6 a piece and the New Zealand crop, mostly grown in Northland and Bay of Plenty, was in short supply because of more exports to Australia.
Avocado were about $8 each a year ago in Dunedin and yesterday were $3.50, but there were reports they had touched $7.50 in Auckland last month.
Butter hit a high, up on last month’s record $4.80 for 500g to $5.05 in June, compared with $3.38 in June last year.
While lettuce and broccoli prices were down, tomato and kumara prices continued to rise and kumara prices were at their highest-ever $8.18/kg.
Westpac acting chief economist Michael Gordon said the 0.2% rise in June was less than expected.
"The main surprise was a quicker-than-expected reversal in vegetable prices, which had spiked in the past few months after flooding had wiped out some crops," Mr Gordon said.
Mr Haigh said the wet autumn had pushed up vegetable prices to high levels in May, but modest declines in some fruit and vegetables did not slow annual price increases.
Despite a monthly fall of 0.4% for fresh fruit and vegetables, annual vegetable prices kept food prices rising during the year ended June. Overall food prices increased 3% during the year.
Spending on grocery food such as dairy, bread, and cereals, made up about $35 of every $100 spent on food, compared with $15 for fruit and vegetables. Mr Haigh said because the annual increase for grocery food was much lower than fruit and vegetables, the overall increase in food prices was only 3%.
