A recent spike in the price of whole milk powder is being blamed for an impending rise in dairy product prices.
The dairy cooperative Fonterra says the prices of milk, cheese and butter on supermarket shelves will all go up next month, because global commodity prices have jumped 95% since the middle of the year.
Fonterra says the high dollar has so far shielded consumers from any rise, but because of the increasing demand overseas, manufacturers here are now paying more for the milk.
It says milk prices are likely to rise by about 15c per litre, cheese by up to $2 a kilogram and butter by a dollar or more per kilogram.
