Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Data Flash (New Zealand) Food Price Index - April

Data Flash (New Zealand) Food Price Index - April 2000


Key facts

The food price index fell 0.5% mom in April to a level 0.7% lower than April 1999. This followed a 0.1% mom increase in March. The market had expected a rise of 0.4% mom.

The most significant contribution to the fall in April was a 0.8% decline in grocery food prices, driven to a significant extent by a very large fall in the price of potato crisps. Excluding fresh fruit and vegetables, food prices were still down 0.5% in April but were 0.7% higher than a year earlier.

The food price index (FPI) makes up 18% of the CPI regimen.

Comment

The fall in food prices in April was unexpected and appears to reflect greater discounting in the supermarket sector. Although some bounce back can be expected over the coming months, the food price index appears likely to make a smaller contribution to the Q2 CPI movement.

Nonetheless, we have raised our forecast of the Q2 CPI movement to 0.8% from 0.5% previously. This change largely reflects the recently announced rise in tax on tobacco, together with a smaller contribution from last week's 3 cent increase in petrol prices (with a further rise in petrol prices in the offing should current crude oil and NZD weakness be sustained).

Darren Gibbs, Senior Economist, ++64 9 351 1376

This, along with an extensive range of other publications, is available on our web site http://research.gm.db.com

In order to read our research you will require the Adobe Acrobat Reader which can be obtained from their website http://www.adobe.com for free.

For answers to your EMU questions, check Deutsche Bank's EMU web site http://www.db.com/emu or email our helpline business.emu@db.com.


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Elsewhere:


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>