Christmas Grocery Prices Drop Across NZ — Shoppers Celebrate Savings

With Christmas just days away, New Zealanders are enjoying a welcome surprise at supermarket checkouts: grocery prices have dipped for the first time in months, giving households much-needed breathing room during the festive rush. For families planning big holiday meals, the drop has brought a sense of relief — and in some cases, genuine celebration.

What’s Changing / What’s New

• Supermarkets across NZ have reduced prices on key Christmas staples.
• Seasonal produce, meat, and baking essentials show the largest price cuts.
• Discounts range from 5–18 percent, depending on store and region.
• Retailers cite improved supply chains and strong seasonal harvests as major contributors.
• Consumer spending is expected to rise modestly, boosted by the savings.

Real Stories Behind the Savings

In Palmerston North, mum of four Janelle Harper said the price changes came at the perfect moment. “We do a big Christmas lunch every year — ham, veg, pavlova, the whole thing. Seeing the bill drop by almost $30 this week felt like a gift.”

Wellington flatmate Aaron Hokianga said his household is finally able to add extras to their Christmas menu. “Last year we skipped half the treats. This year we can actually buy what we want without stressing.”

Government Statements

The Ministry of Business, Innovation and Employment (MBIE) acknowledged the easing prices, noting that Christmas discounts appear stronger than in 2024.
MBIE pricing spokesperson Mara Sutherland said,
“While cost pressures remain in some areas, it’s encouraging to see food affordability improving just as families prepare for the holidays.”

The Commerce Commission added that improved shipping reliability and strong competition among major chains helped stabilise costs earlier than expected.

Expert Analysis / Data Insight

Agricultural economist Dr. Jacob Ruru said New Zealand’s summer harvest played a major role.
“Good weather, fewer supply disruptions, and stronger local yields have pushed prices down,” he explained. “We’re seeing Christmas vegetables like potatoes, carrots, and kūmara landing significantly cheaper than last year.”

Market monitoring reports show:

• Fresh produce prices down 12–15 percent week-on-week.
• Baking ingredients down around 8 percent, driven by surplus stock.
• Christmas meat items, including glazed hams and roasts, reduced by 5–10 percent.

Comparison Table: Christmas Grocery Prices 2024 vs 2025

Item Category	2024 Average Price	2025 Average Price	Change
Fresh Produce (per basket)	Higher, weather-affected	Lower due to strong harvest	↓ 12–15%
Baking Essentials	Slightly elevated	More affordable	↓ 8%
Christmas Hams	Premium pricing	Competitive promotional pricing	↓ 5–10%
Chocolates & Treats	High seasonal pricing	Greater discounting	↓ 6–9%
Beverages	Moderate	Stable or slightly lower	↓ 3–5%

What You Should Know

• Best discounts are available on produce, ham, dairy, and baking goods.
• Some regional differences remain, with rural areas seeing the smallest drops due to transport costs.
• Stores recommend shopping earlier to secure the best deals before stock runs low.
• Budget-conscious families may save $20–$50 on a standard Christmas shop.
• Expect short-term volatility, but prices should remain lower through New Year’s week.

Here’s what you need to know before your final Christmas shop.

---

Q&A Section

1. Why have grocery prices dropped this Christmas?
Better harvests, improved shipping schedules, and stronger competition among retailers have helped reduce costs.

2. Which items have the biggest price cuts?
Fresh produce, baking ingredients, Christmas hams, and seasonal treats.

3. Are all supermarkets offering discounts?
Yes, but the depth of discounts varies by chain and region.

4. Will prices stay low after Christmas?
They may rise slightly in January, but analysts expect prices to remain stable for now.

5. Are rural areas seeing the same reductions?
Some rural supermarkets show smaller drops due to higher transport costs.

6. Why are Christmas hams cheaper this year?
Retailers brought in larger volumes earlier, giving them more flexibility for promotions.

7. Are imported goods cheaper too?
Some are — improved shipping reliability helped stabilise prices on imported chocolates, baking goods, and beverages.

8. How much can families expect to save?
Depending on their shop, families may save between $20 and $50 compared with last year.

9. Do loyalty cards or apps boost the savings?
Yes. Many stores are running additional member-only specials during the final shopping days.

10. Are prices expected to drop further before Christmas Day?
Retailers say small additional reductions are possible on seasonal stock.

11. Is inflation still affecting food prices?
Some items remain high, but inflationary pressure has eased across core Christmas products.

12. How long will promotional pricing last?
Most deals will run until Christmas Eve, with some continuing into the New Year.

13. Are eggs and dairy cheaper too?
Dairy has eased slightly; eggs remain stable but not significantly lower.

14. Should shoppers worry about shortages?
Not significantly. Supply levels appear strong, but popular items may sell out closer to Christmas.

15. Do online groceries reflect the same discounts?
Most online platforms match in-store deals, though delivery slots are limited.