Here's why it feels like your money is tighter

By Susan Edmunds of RNZ

Westpac economists say the price of many things New Zealand households buy every day has risen faster than general inflation over the past 10 years.

Those products included butter, bread, mince and even mince pies and chocolate.

Inflation as measured by the Consumers Price Index (CPI) is up 38% since 2016.

But Westpac said some of the things you probably put in your trolley every week have risen much faster.

Milk

The average price for two litres of milk was up 57% over 10 years, from an average of $3.27 in 2016 to $5.12 this year. In the middle of this year, Stats NZ called out milk as one of the items that was helping to push up food price inflation.

At the time, ASB senior economist Mark Smith said retail milk prices in New Zealand had a six- to nine-month lag from global market movements.

Breakfast

Even a basic breakfast of Weet-Bix hasn’t been able to escape the price rise, although was not up as much as inflation. The average price of a 1.2kg pack of breakfast biscuits was up 27% from $6.73 to $8.58, Westpac said.

Olive oil

Olive oil has been one of the big price movers of recent years. Westpac said it was up 40% over 10 years, from $12.14 to $17.04. The increase has been blamed on weather and poor harvests.

Butter

Butter prices lifted 157%, from $3.28 for a 500g block in 2016 to $8.43 on average. Much of that increase has been in recent years, pushed up by global dairy prices.

Cheese

For similar reasons, cheese has also increased in price. Westpac said a kilogram of mild cheese became 75% more expensive, from $7.39 in 2016 to $12.95 in 2026.

White bread

A loaf of white bread increased in price by 120% over the decade. Global wheat prices have been part of the problem.

Canned tomatoes

A can of tomatoes increased in price by 43%, from $1.12 in 2016 to $1.60 this year. Fresh tomatoes were up 30%. Crop failures have affected tomato prices, as well as rising costs for things like transport.

Beef mince

A kilogram of beef mince increased in price by 71% over 10 years, from $14.24 in 2016 to $24.41 now. A much smaller US cattle herd has been credited with pushing up prices around the world, including in New Zealand – because we export most of our beef.

Takeaway coffee

The average price of a takeaway coffee has lifted 41% over 10 years, from $3.72 in 2016 to $5.24 this year. Coffee bean prices have increased quickly and many other input costs for cafes have also risen, such as milk, labour and rent.

Other costs

Westpac said the average cost of a GP visit was up 50%, a dental exam 41% and a tank of 91 fuel for a mid-sized car 66%. A warrant of fitness was up 61% and a tank of diesel for a mid-sized SUV was up 141%. Rates and services were up 87% and building costs 72%.

What hasn’t risen so fast?

Westpac New Zealand managing director of product, sustainability and marketing Sarah Hearn said some items that were more “nice to have” than necessities, such as home furnishing, communications and cultural services (eg TV subscriptions), had much smaller price rises.

Chicken breasts were up only 2% since 2016 and a 1.5kg bag of flour had gone up 13%.

This story was first published on rnz.co.nz