Food prices fell 0.9% in August - the largest monthly fall in three-and-a-half years.
Lower prices for groceries, fruit and vegetables accounted for nearly all of the decrease in Statistics New Zealand's food price index.
Grocery prices fell 1.3% in August, driven by lower prices for bread, chocolate biscuits and cheddar cheese.
Prices for cheddar cheese, milk and butter returned to levels last seen in late 2007 or early 2008.
Fruit and vegetable prices decreased by 3.3%, driven by lower prices for tomatoes, strawberries and avocados.
Food prices rose 4.6% in the year to August - the smallest annual increase since January 2008.