NZ food prices rise 0.3% in April as Kiwis pay more for fruit and veges, less for beef and chicken

Thursday 12th May 2016

New Zealand food prices rose in April from March as Kiwis paid more for vegetables such as tomatoes and cucumbers while enjoying cheaper prices for beef and chicken.

Food prices gained 0.3 percent last month, or 0.2 percent seasonally adjusted, for an annual gain of 0.5 percent, Statistics New Zealand said. The food price index recorded its first annual gain in seven months, the figures show.

Food prices make up almost 19 percent of the consumers price index, which has remained stubbornly below the Reserve Bank's 1 percent-to-3 percent target range since December 2014 and isn't forecast to return within the band until the fourth quarter of this year. Traders are betting the central bank will cut the official cash rate to a record low 2 percent at its June 9 monetary policy statement.

Fruit and vegetable prices rose 3.9 percent in April, following a 1.9 percent gain in March. Vegetable prices rose 6.3 percent, led by a 69 percent jump in tomato prices and a 46 percent increase for cucumbers. Fruit prices rose 1.1 percent, led by gains for avocados and strawberries.

Restaurant meals and ready-to-eat food rose 0.2 percent and grocery foods gained 0.1 percent, as a 4.2 percent rise in cheese prices was offset by lower prices for lollies. Meat, poultry, and fish prices fell 1.7 percent, as beef declined 3.9 percent and chicken fell 2.3 percent. Lamb rose 2.9 percent.

Non-alcoholic beverage prices fell 0.2 percent in the latest month, led by lower prices for energy drinks and bottled water.

BusinessDesk.co.nz

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