December food prices up on year despite fall in fruit and veggies

Tuesday 15th January 2019

Food prices lifted on the year in December as a tumble in fruit and vegetable prices was offset by increases in other products like eggs.

Food prices increased 1.0 percent on the year in December, Stats NZ said. Fruit and vegetable prices were down 6.1 percent as more favorable growing conditions boosted supply and lowered prices.

“Overall, getting your five-plus (5+) a day servings of fruit and vegetables was cheaper in 2018,” consumer prices manager Geraldine Duoba said.

Prices of kumara and pumpkins reached record highs in late 2017. These vegetables were 39 and 51 percent cheaper, respectively, in December than they were a year earlier.

Lettuces were 21 percent cheaper than in December 2017 and avocado prices were 26 percent lower in December than a year earlier.

Meat, poultry and fish prices, however, increased 3.8 percent. Grocery food prices increased 1.4 percent while restaurant and ready-to-eat food prices increased 2.9 percent. According to Stats NZ, the price of eggs reached a record high, with prices up 10 percent on the year.

“Egg industry reports suggest the average New Zealander eats more than 200 eggs a year, with retail sales worth more than $280 million," said Duoba.

Food prices fell 0.2 percent from November but after seasonal adjustment they rose 0.5 percent, Stats NZ said.

Fruit and vegetable prices fell 1.1 percent on the month, while meat, poultry and fish prices rose 0.2 percent. Grocery food prices, meanwhile, were up 0.1 percent while restaurant and read-to-eat food prices rose 0.2 percent.

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)

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