Wellington, Aug 15 (IANS) New Zealand’s food prices rose 5 per cent in the year to July 2025, up from 4.6 per cent the year before, the statistics department Stats NZ said on Friday.

The grocery food group rose 5.1 per cent, led by dairy price hikes, with milk up 16 per cent, butter 42.2 per cent, and cheese 29.5 per cent, Stats NZ said, adding that since July 2020, milk prices have jumped nearly 34 per cent, the biggest driver of overall food inflation, Xinhua News Agency reported.

Meat, poultry, and fish prices rose 7.9 per cent, led by beef steak up 24.6 per cent and mince 19.3 per cent, while fruit and vegetables climbed 7.3 per cent, non-alcoholic drinks 4.4 per cent, and restaurant meals 2.2 per cent.

In contrast, rent prices increased 2.4 per cent in the year to July, the slowest rate of increase since 2011, said Stats NZ prices and deflators spokesperson Nicola Growden.

Last month, New Zealand’s Resources Minister Shane Jones said that New Zealand was reopening petroleum exploration after passing the Crown Minerals Amendment Bill.

The bill, now moving through parliament, lifts the 2018 ban on oil and gas exploration beyond onshore Taranaki in the North Island and updates decommissioning rules to meet international standards.

It also establishes a new permit for small-scale non-commercial gold mining, reflecting the government’s aim to increase investment in government-owned mineral resources.

Jones stressed the importance of a pragmatic energy strategy, with natural gas playing a key role in New Zealand’s future energy mix.

He said the previous exploration ban deterred investment and led to gas shortages, hurting energy security, investor confidence, and economic growth.

The bill closed a legal gap by allowing ministers to hold former permit-holders liable for cleanup costs if current operators can’t cover them, protecting public funds while encouraging investment, he added.

According to the minister, most measures take effect immediately, with full implementation by September 2025.

The New Zealand government allocated 200 million NZ dollars ($118.62 million) over four years in the last Budget to co-invest in new gas fields.

However, the opposition Green Party has criticised the government’s decision to repeal the oil and gas ban, arguing it will worsen both the climate and cost of living crises.

–IANS

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