Price of butter hits record high as latest Food Price Index released

November 20, 2017
The cheapest 500g block was $3.32 12 months ago, now it's $5.39.

Dairy prices have pushed the cost of butter up a massive 62 per cent in just the last year, with the flow on effect having the potential to impact Kiwi's favourite bakery goods. 

Stats New Zealand released the latest Food Price Index, showing food prices rising 2.7 per cent in the year to October 2017, following a three per cent increase in the year to September 2017.

The price of butter has continued to soar in another record breaking increase, with the average price of the cheapest 500g block now costing $5.67, up from the previous record of $5.55 in September 2017.

A block of butter sat at $3.50 this time last year. 

"Dairy products are very widely used inputs in a number of food items," consumers price index manager Matthew Haigh said.

"The effects of price rises flow on to products such as takeaway biscuits, buns, cakes and coffee, and eating out for lunch and dinner, all of which saw increases in the year to October 2017."

Milk rose 7.5 per cent and cheese went up by 12 per cent. 

But it's not all bad news, the monthly food price fell by 1.1 per cent as seasonal fruit and vegetables decreased by 6.8 per cent, and 1.3 per cent after seasonal adjustment. 

"Although fruit and vegetable prices have dropped this month, the impact of bad weather earlier in the year continues to cause higher prices compared with this time last year," Mr Haigh said.


 

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