Sharechat Logo

NZ food prices fall in November, led by cheaper spring time veggies

Thursday 11th December 2014

Text too small?

New Zealand food prices fell in November, following no change in October, led by cheaper spring time vegetables and cheese prices.

The food price index slipped 0.5 percent last month, following no change in October and September 0.8 percent decline, according to Statistics New Zealand. The index was 0.6 percent higher than November 2013. Food prices make up 19 percent of the broader consumers price index (CPI), a measure of inflation compiled by the national statistician.

The Reserve Bank today kept interest rates on hold as inflation data came in lower than expected. The central bank flagged tame expectations for increases in New Zealand's CPI could still be too high, and is reviewing the way it assesses non tradable inflation, which has undershot its estimates. Food prices sit in the tradable component of inflation.

Today's data shows prices for all but one of the five food groups fell in November, with fruit and vegetable prices dropping 3 percent, led by a seasonal 6.4 percent drop in vegetable prices. Prices for tomatoes plunged 52 percent in the month, adding to October's 20 percent drop. Fruit prices rose, led by higher prices for apples and nectarines, Statistics NZ said.

Grocery food prices, the largest contributor to the index, fell 0.3 percent on cheaper bread, cheese and confectionary, while fresh milk prices rose 1 percent. Meat, poultry and fish prices declined 0.3 percent, as cheaper fish and seafood offset a rise in beef and processed meat prices. Non-alcoholic beverages fell 0.2 percent. Restaurant and ready to eat foods increased 0.2 percent.

On an annual basis, fruit and vegetable prices rose 0.7 percent compared to November a year earlier. Meat, poultry and fish prices rose 3 percent, driven by a 6.8 percent gain in beef prices and a 3.2 percent rise in chicken. Grocery food prices fell 0.8 percent in the year, as supermarket discounting led to a 13 percent drop in the price of bread. Cheese, yoghurt and butter prices also decreased. This offset a 7.6 percent annual gain in fresh milk prices, which are at their highest level, said Statistics New Zealand.

Non-alcoholic beverage prices fell 0.8 percent. Restaurant and ready to eat foods increased 1.9 percent on an annual basis.


Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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 dollar sags after avalanche of data and central bank action
Fonterra board starts planning chair succession
Fulton Hogan keeps Australian civil construction unit
Time for congestion pricing has come - NZIER
Colliers defends KiwiBuild as 'far from a colossal failure'
Pushpay shares rise as cost-cutting upgrades earnings guidance
20th September 2019 Morning Report
NZ dollar weaker against British pound on EC president's Brexit optimism
Todd plans Kapuni drilling campaign
MARKET CLOSE: NZ shares gain; appetite for KFC helps Restaurant Brands hit record

IRG See IRG research reports