NZ food prices weaken in May, avocados smash records

New Zealand food prices slipped in May as record high prices for avocados and increased meat prices were offset by weaker prices for mandarins, kiwifruit and tomatoes.

Statistics NZ said food prices fell a seasonally adjusted 0.1 percent in May from April as rises in meat, poultry and fish prices were offset by falls in fruit and vegetable prices - except for avocados which hit a record average price for a 200-gram avocado of $5.05, up 37 percent from April and 50 percent higher than May last year.

Overall, fruit and vegetable prices declined 2 percent in May from the previous month, influenced by a 35 percent drop in mandarins, 39 percent fall in kiwifruit and 6.5 percent drop in tomatoes. Meat, poultry and fish prices gained 0.8 percent, led by a 6.1 percent gain in chicken and a 7.2 percent increase in lamb. Avocado prices reflected both higher prices and smaller fruit, with the New Zealand Avocado Growers Association noting harvest volumes in the year to June were down to around half that for the previous season.

“Seasonality impacts avocado prices,” Stats NZ prices manager Matthew Haigh said. “Typically, avocado prices peak in July and August, as the main harvest season is from August to March.”

Food prices fell 0.1 percent in the year to May, influenced by a 10 percent drop in fruit and vegetable prices as lettuce prices fell 52 percent, tomatoes dropped 24 percent and broccoli slipped 43 percent. Stats NZ said the falls follow large price increases in 2017, as New Zealand growers lost crops due to poor weather. 

Despite the overall price fall, there were increases in restaurant meals and ready-to-eat food prices, up 2.9 percent, and non-alcoholic beverage prices, up 4.6 percent. The minimum wage increase of 75 cents to $16.50 an hour on April 1, 2018 may be a partial factor for these price increases, the statistics agency said.

The food price index accounts for about 19 percent of the consumers' price index, which is the Reserve Bank's mandated inflation target when setting interest rates.

(BusinessDesk)

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.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Related News:

Now is the time to reassess your investments
Now is the time to reassess your investments
Fonterra looking to lift China's importance in new strategy
A2, Synlait shares climb as takeover bid revives optimism about Chinese appetite for milk
Service sector activity eases in August but still expanding
Lumpy imports drive bigger July trade deficit than expected
Nimbys, carparks and the status quo under threat as govt tells big cities: grow up and out
Dairy manufacturers got better prices in June quarter
Orr defends RBNZ rate cut, says monetary policy looks ahead, not behind
RBNZ's Orr says investors need to put their money to work