Food prices rose significantly while energy costs and airfares also surged. These figures indicate growing inflationary pressure across several key sectors.
Food prices jumped by 0.8 per cent in April alone, pushing the annual food inflation rate to 3.7 per cent. This surge was largely driven by increases in the grocery food and non-alcoholic beverage categories, which rose by 5.2 per cent and 6.8 per cent, respectively.
Dairy products were among the biggest contributors, with the prices of milk, cheese, and butter all recording substantial increases. Butter stood out with a year-on-year rise of 65.3 per cent, reaching an average cost of $7.42 for 500 grams. This is almost $3 more than the same time last year.
Fruit and vegetable prices also nudged upward, marking their first annual increase since January 2024. Although the rise was modest at 0.2 per cent, it contributed to the overall trend of widespread food price growth.
Non-alcoholic beverages also became more expensive, largely due to the sharp rise in instant coffee prices. The average price for 100 grams of instant coffee is now $8.21, up by $1.44 compared to April 2024.
Airfares experienced a substantial spike during the April school holidays and the Easter break. International flight prices increased by 24.7 per cent compared to March 2025, while domestic airfares rose by 3.8 per cent. Flights to destinations like the Pacific Islands, Australia, and Asia were the main contributors to the international airfare hike. The figures reflected seasonal demand and limited capacity.
April also marked the first time electricity and gas prices were included in the SPI. Electricity prices rose 2.3 per cent from March to April, while gas prices increased by 1.1 per cent. These figures highlight emerging energy cost pressures that will now be tracked more closely in monthly updates.
While rental prices provided a slight reprieve, rising only 0.2 per cent in April, the annual rental inflation rate dropped to 3.0 per cent. This modest easing in rental costs offered some balance amid broader cost increases.
Including electricity and gas means the SPI now covers around 46.5 per cent of total components measured in the quarterly Consumer Price Index (CPI). With the CPI showing an annual inflation rate of 2.5 per cent in the March quarter, the April SPI results suggest inflation may edge higher in the June quarter.
Despite the volatility of some components, the latest data signal renewed inflationary pressures that could influence economic forecasts and monetary policy decisions in the coming months.
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