Dairy produce drives higher food bills

NZ food bills have increased 0.9 per cent over the past year, with lower fruit and vegetable prices helping offset higher dairy produce prices.

New Zealand food prices have risen 0.9 per cent over the past year, with higher dairy product prices the main driver.

In the year to January, milk was up 8.8 per cent, butter 20 per cent and cheese four per cent.

Helping offset those rises were lower prices for fruit, vegetables, confectionery, nuts, snacks and sauces.

Statistics New Zealand data, released on Friday, shows food prices rose 1.2 per cent in January, reflecting a 4.4 per cent, seasonally-induced increase in fresh produce prices.

But milk, cheese prices and egg prices eased slightly during the month.

Fruit prices in January rose 7.4 per cent, driven largely by apples, strawberries, kiwifruit and mandarins. Vegetable prices rose 1.8 per cent over the previous month.