Food inflation has eased to the lowest level since September 2018, according to new data.

A report by Stats NZ says food prices fell 0.2 percent in May on the month before, to be 0.2 percent higher than a year ago - the lowest annual increase in over five years.

Devon Funds Management Head of Retail Greg Smith says this comes as petrol prices are also dropping, but consumers shouldn't get too excited yet.

"They're still more than they were a year ago, petrol and diesel's 50 percent more expensive than pre-Covid."

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