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

 

NZ: Food Price Index - May 2001

Data Flash (New Zealand)


Key points

The food price index rose by 0.3%mom - the market had expected an increase of 0.1% mom.

As a result, the annual rate of food price inflation rose to 6.2% - the highest rate recorded since June 1990.

The higher than expected result occurred despite a 6.8% mom decline in the volatile fruit and vegetable component (driven by sharply lower prices for fresh vegetables, in particular).

General grocery prices rose 1.6% mom, taking the annual rate of grocery price inflation to 4% (the highest rate since October 1996).

A 5.6% rise in milk prices made the most significant contribution to the rise in general grocery prices, while many other dairy-related products also increased in price. These increases reflect buoyant world prices for dairy produce and the weak NZD. A range of other grocery items also increased in price (eg potato crisps and softdrinks). Promotional activity did not appear to have a strong influence on grocery prices this month, suggesting that the result was driven by genuine price rises.

Meat prices rose a further 1.8% to 11.2% higher than a year earlier, again reflecting buoyant commodity prices and the weak NZD.

Prices in the restaurant and takeaway sub-group rose 0.7% mom in May, taking the annual rate of inflation in this subgroup to a 10 year high of 3.8%. The Food Price Index makes up 18% of the CPI regimen.

Comment

Our preliminary forecast for the Q2 CPI is 0.9% qoq (the RBNZ also forecast 0.9% qoq in its May Monetary Policy Statement). This result would see the annual rate rise from 3.1% to 3.3%.

However, at present our estimate is subject to a greater than usual degree of risk, due to the still uncertain impact on measured airfares of the collapse of Qantas New Zealand in late April. Although Freedom and Qantas have introduced highly publicised special low fares on some routes, anecdotal evidence suggests that the average airfare faced by many travellers (especially those travelling on short notice) may, in fact, have risen somewhat during Q2.

Ends


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

Having A Cow? Dairy Product Prices Slide For Fourth Straight Auction

Dairy product prices fell at the Global Dairy Trade auction, retreating for the fourth straight auction amid signs of increased production... Whole milk powder fell 2.7 percent to US$2,778 a tonne. More>>

ALSO:

Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>

ALSO:

Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>

ALSO:

CO2 And Water: Fonterra (And Dairy NZ)'s Environment Plans

Federated Farmers support Fonterra’s bold push to get to zero emissions of CO2 on the manufacturing side of the Co-operative, both in New Zealand and across its global network. More>>

ALSO:

Fisheries: Decision To Delay Monitoring ‘Fatally Flawed’

Conservation group representatives say a decision by the new Minister of Fisheries, Stuart Nash, to delay implementation of camera monitoring of fishing efforts in New Zealand is ‘fatally flawed’. More>>

ALSO:

 
 
 
 
 
 
 
 
  • Bill Bennett on Tech