Groceries cost 25% more this side of ditch

New Zealanders spend up to 25% more than Australians on grocery staples, analysis from comparison website Finder shows.

Finder analysed the cost of 25 items at Countdown in New Zealand NZ Woolworths in Australia and found a $24 difference in a typical weekly grocery haul. Countdown is owned by Woolworths.

The groceries amounted to $121 in New Zealand, compared to $97 in Australia, and were compared between 8am and 10am on March 31.

The exchange rate used was A$1 to NZ$1.08, on March 31.

In Australia 10% GST is not added to most grocery staples such as fresh fruit and vegetables, milk, bread, spices, cereal, tea and coffee.

GST on fresh food in New Zealand accounted for 66% of the price difference. However, even excluding the 15% GST on all goods and services in New Zealand, Kiwis paid 9% more for groceries amounting to $9, a Finder spokesperson said.

A Countdown spokesperson said New Zealand was dealing with 30-year-high inflation and high global prices for dairy products and beef, which was driving prices in the domestic market.

The Consumer Price Index for food rose 5.9% in the 12 months to December 2021, the largest annual increase since 1990.

As of February, cabbage, broccoli, tomatoes and cucumber have had the largest price increases compared to February last year.

‘‘While it’s not great news for Kiwis, the reality is that we’re a smaller country in a challenging geographical location, which means we do pay more to get our groceries here than Australia,’’ the Countdown spokesperson said.