Food prices fell 1.3% in the year to July and dairy prices contributed significantly.
Among the largest falls in Statistics New Zealand’s food price index were meat, poultry and fish prices, down 2.1%; grocery food prices, down 2.9%; and non-alcoholic beverage prices, down 2.7%.
SNZ’s consumer prices manager Matt Haigh said the price of cheese had continued to fall in the year to July, to its lowest level since October 2009.
"The average price of a kilo block of the cheapest available mild cheddar cheese was $7.39 in July 2016, down from $9.07 in July 2015," he said.
While prices were down 1.3% on a year ago, they were down 0.2% from June.
He said meat, poultry and fish prices had decreased 2.1% during the latest year.
Lower prices for chicken were partly offset by higher prices for beef.
Mr Haigh said fruit and vegetable prices decreased 0.9% during the year.
Lower prices for tomatoes, kumara, mandarins and lettuce were partly offset by cucumber prices at their highest level since August 1995.
While prices for dairy products fell, fresh milk was up slightly on June, but was the lowest July price for the past three years, at $3.27.
Avocado prices had been at historically high levels in recent months, but lower prices in July were influenced by the supply of new-season fruit, he said.
A 200g avocado was $4.61 in June and $2.29 in July.
