Statistics New Zealand (Stats NZ) has said that annual food prices in the country rose by 3% in September this year.

The department also noted that the rise follows a 2.3% increase registered in the year August 2017.

Grocery food prices increased by 3.7% for the year due to higher priced dairy products such as butter and fresh milk.

Statistics New Zealand consumers price index manager Matthew Haigh said: "Prices for dairy products, including butter, fresh milk, cheese, and yoghurt, were all higher in the year to September.

"For every $100 spent on food, Kiwis spent about $10 on these dairy items."

The vegetable prices in the country have seen an increase of 6.5% in the year up to September due to wet weather and more expensive potatoes and kumara.

"The vegetable prices in the country have seen an increase of 6.5% in the year up to September due to wet weather and more expensive potatoes and kumara."

Consumers are reported to have paid NZ$2.13 ($1.52) for 1kg of potatoes in September this year in comparison to NZ$1.69 ($1.20) last year.

Fruit prices increased by 4.4%, with higher prices for avocados and nectarines.

The monthly food prices in the country fell by 0.2% last month due to a fall in vegetable prices (7.4%) in September.

Haigh further added: "Prices for cucumber, lettuce, and capsicum led the dro in vegetable prices in September.

"The prices for items found in salads typically begin to fall in September months as warmer weather arrives, although the falls for September 2017 have not been as large as in previous years."

The United Nations Food and Agriculture Organization (FAO) said global food prices rose slightly in September, as firmer prices of vegetable oils and dairy products offset declining prices for staple cereal grains.