Food prices fell for the third consecutive month in December as cheaper groceries and drinks offset a sharp rise in fresh fruit and vegetables.
Official numbers show prices fell 0.2 percent on the previous month.
Grocery prices fell one percent as a group, driven by such items as chips, biscuits, some dairy and meat products, and soft drinks.
The biggest price rises were fruit and vegetables, especially kiwifruit, which hit a record high average price of more than $8.20 a kilogram, nearly double the price the year before .
Annual food inflation remained at 2.4 percent.
Food prices make up about a fifth of the overall inflation rate.