Sharechat Logo

NZ food prices rise in August, butter hits record high due to global demand

Wednesday 13th September 2017

Text too small?

New Zealand food prices rose in August, with fruit and vegetables, meat, and groceries such as butter more expensive than a year earlier.

The food price index advanced 0.2 percent on a seasonally adjusted basis in the month, and gained 2.3 percent for the year to August, Statistics New Zealand said. Fruit and vegetables cost 5.5 percent more than a year earlier, while meat, poultry and fish prices rose 0.6 percent and grocery food prices increased 2.8 percent.

Butter prices hit a record high of $5.39 per block, up 11 percent in the month and 62 percent from a year earlier. The annual butter price increase is the largest in percentage terms since 2010, Stats NZ said. Chocolate prices also rose 3.4 percent in the month. 

 

“We have seen butter prices rising lately due to New Zealand’s export driven market,” consumers price index manager Matthew Haigh said. “Butter prices have experienced all-time highs in the global market, and this also drives the price here at home.”

Food prices account for about 19 percent of the consumers price index, which is the Reserve Bank's mandated inflation target when setting interest rates. A spike in food prices and a recovery in oil prices earlier this year led to a jump in inflation, which has been subdued in recent years, however as those movements flatten out the pace of CPI increase is expected to slow in early 2018, the Reserve Bank has said.

Vegetable prices increased 8.7 percent on an annual basis, driven by higher prices for kumara, potatoes and cucumbers, and were up 5.4 percent in the month. Fruit prices rose 0.3 percent annually, but dropped 0.5 percent in the month, as avocados and strawberries became cheaper in August. 

The price of chicken rose 3.3 percent in the year to August 2017, but dropped 2.4 percent in the month, while beef fell 2.6 percent annually and was down 2.5 percent on a monthly basis and pork dropped 8.6 percent in the year. Restaurant meals and ready-to-eat food prices rose 2.3 percent on an annual basis.

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ food prices weaken in May, avocados smash records
Govt axed offshore oil and gas sector with no Cabinet paper, minimal analysis
Regulators say so far no evidence of systemic misconduct by NZ banks
Business sector upbeat about NZ-EU trade talks
Government calls for review of insurance law as pressure builds over industry poor conduct
NZ 1Q quarterly retail sales up 0.1% as weaker fuel and vehicle sales weigh
NZ annual net migration slows in April as more non-Kiwis leave
Budget 2018 sets the scene for a trilogy of transformation, Robertson says
NZ SMEs deliver bulk of jobs growth over past year: economist
Xero closes in on maiden profit with positive annual earnings; stock rises to record

IRG See IRG research reports