Shoppers are being told not to expect a price cut on their dairy products, despite another sharp fall in world prices of 7.3 percent in an international auction overnight.
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International dairy prices have nearly halved since February this year, but Consumer New Zealand says people have been paying more, not less for their milk, cheese and butter.
The consumer watchdog's chief executive, Sue Chetwin, said while the food price index has risen by less than 1 percent in the year to August, cheese is up more than 5 percent, milk up 11 and butter 13 percent higher.
Supermarket chain Countdown said it is up to the suppliers like Fonterra to cut prices, which it would then pass on to consumers.