Butter prices peaked in August, rising to $5.39 for a 500g block. Skyrocketing international prices are largely to blame.
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Global butter prices have been at all-time highs – and it’s these prices that skew what we pay, coupled with limited domestic competition for our dairy dollar.
Other dairy products have also seen price hikes this year, with milk up 7.9% and cheese 5.3%.
The rise in dairy, along with higher prices for veges, helped push up overall food prices by 2.3% in the year to August.
Statistics New Zealand figures show vege prices jumped 8.7%. Higher prices for kumara and potatoes led the rise as the dismal wet weather affected crop yields. A kilo of kumara cost $8, up from $4.77 last year.