Rising food prices and supermarket competition

The story so far

Food prices rose 5% in the 12 months to July 2025, according to Stats NZ, led by higher costs for dairy products such as milk, butter and cheese, and all five food groups were dearer than a year earlier.^{15 Aug 2025} Essential items such as white bread and standard milk also rose significantly, and people buying basic goods were particularly affected.^{19 Aug 2025} Newly released emails show that staff for Finance Minister Nicola Willis urgently sought international dairy price comparisons shortly before she met Fonterra's chief executive, amid pressure over soaring butter prices.^{25 Aug 2025} Willis intends to announce a series of measures on supermarket competition, following Stats NZ reports that grocery prices rose 5.1% in the year to July, driven largely by dairy.^{27 Aug 2025} Food prices were again reported up 5% over the year to August, and an economist said this was outstripping wage growth and squeezing household budgets, with milk, cheese and butter again contributing.^{16 Sep 2025}

What's next

Willis intends to release a series of announcements aimed at supermarket competition, though the stories give no date for them.^{27 Aug 2025}

Key moments

1. 15 Aug 2025Stats NZ reports food prices up 5%, led by dairy, with all five food groups higher.
2. 19 Aug 2025Stats NZ data shows essential items like white bread and standard milk rising significantly.
3. 25 Aug 2025Emails reveal Willis's staff urgently sought dairy price data before Fonterra meeting.
4. 27 Aug 2025Willis plans supermarket competition announcements after grocery prices rose 5.1%.
5. 16 Sep 2025Economist says food price rises of 5% are outstripping wage growth.

Written from the stories below; each sentence links to its sources.