{"id":428259,"date":"2026-05-15T02:05:10","date_gmt":"2026-05-15T02:05:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/428259\/"},"modified":"2026-05-15T02:05:10","modified_gmt":"2026-05-15T02:05:10","slug":"fuel-prices-jump-over-30-while-april-food-price-inflation-cools","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/428259\/","title":{"rendered":"Fuel prices jump over 30% while April food price inflation cools"},"content":{"rendered":"
Prices for the overall food group increased by 2.6% in the 12 months to April 2026, after a 3.4% rise in March.<\/p>\n
Key food items that contributed to the annual increase included porterhouse\/sirloin steak, beef mince, takeaway coffee and white bread.<\/p>\n
Items that recorded price decreases included olive oil and potato chips.<\/p>\n
Higher prices for the meat, poultry and fish group category contributed the most to the increase, up 7.8% on an annual basis and 0.1% on a monthly basis.<\/p>\n
Prices for restaurant meals and ready-to-eat food were the next largest contributor, up 2.7% annually and 0.3% monthly.<\/p>\n
Prices for the grocery food subcategory were up 0.7% on a monthly and annual basis, the largest monthly increase.<\/p>\n
The only categories to record a monthly price decrease were the fruit and vegetable subcategory, down 2.3% monthly but up 3.7% annually, and non-alcoholic beverages, down 0.3% monthly but up 1.2% annually.<\/p>\n
ASB chief economist Nick Tuffley said prices had risen less than expected, with signs the subdued consumer demand backdrop is tempering some cost-driven influences.<\/p>\n
\u201cThe Iran conflict has seen an escalation in geopolitical tensions and higher and more volatile fuel prices. The outlook is incredibly uncertain and there are a number of paths ahead for short-term inflation,\u201d Tuffley said.<\/p>\n
\u201cThe trajectory of petrol and diesel prices will play an important role in impacting short-term CPI [Consumers Price Inflation]. Fuel is a key input into the NZ supply chain and there is the pronounced risk of a more widespread uplift in consumer prices.\u201d<\/p>\n
He said hikes to the Official Cash Rate (OCR) still appear to be a matter of when, not if.<\/p>\n
Tuffley said he expected OCR hikes to move in 25 basis point increments, ending the year at 3.25%.<\/p>\n
Alcohol down, energy up<\/p>\n
Prices in the alcoholic beverages category fell 1% on a monthly basis but were up 1.5% on an annual basis.<\/p>\n
Cigarette and tobacco prices also fell monthly, dropping 0.4%, but were up 5.5% on an annual basis.<\/p>\n
Existing rent prices, known as the stock measure of rental property, increased by 0.4% annually but were flat month to month.<\/p>\n
The flow measure, which indicates prices for new rentals or tenancies in the market, was up 0.3% on an annual basis and up 0.2% on a monthly basis.<\/p>\n
Electricity and gas prices continued to rise, with prices for electricity up 13.1% annually and 2.4% monthly.<\/p>\n
Prices for gas increased by 10.8% annually and 0.3% monthly.<\/p>\n
Growden said electricity prices had been increasing every month from December 2024.<\/p>\n
Transport and accommodation<\/p>\n
Domestic air transport prices were yet to show much impact from the rising price of fuel, with prices down 6.9% on an annual basis but up 4.2% monthly.<\/p>\n
Growden said Easter, school holidays and Anzac Day fell in April this year, and that airfare pricing is set up 12 months in advance, meaning movements can be influenced by a range of factors.<\/p>\n
International air transport prices were down 6.5% annually but increased on a monthly basis by 6.2%.<\/p>\n
As for accommodation, domestic prices were up 2% on an annual basis but fell by 5.7% on a monthly basis, while international accommodation prices were down 2.5% annually and down 7.2% on a monthly basis.<\/p>\n
Westpac senior economist Satish Ranchhod said high prices for fuel and fertilizer will push production costs higher over the coming year.<\/p>\n
\u201cThe full impact of oil price rises through the supply chain is yet to be felt, and a sharp rise in inflation is still on the cards for the middle part of the year,\u201d Ranchhod said.<\/p>\n
\u201cImportantly, it will take time for the impact of higher fuel prices to be reflected in other consumer prices and for the related dampening impact [on] economic activity to be seen clearly. That leaves the Reserve Bank walking a tight rope \u2013 interest rates will need to rise, but the question is how soon and how quickly?”<\/p>\n
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.<\/p>\n