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

 

Super Fund/Canada Bid v NZTA: Tow Preferred Bidders For Auckland Light Rail

The two preferred delivery partners for Auckland light rail have been chosen and a final decision on who will build this transformational infrastructure will be made early next year, Minister of Transport Phil Twyford announced. More>>

ALSO:

9.3 Percent: Gender Pay Gap Unchanged Since 2017

“While it has remained flat since 2017, the gender pay gap has been trending down since the series began in 1998, when it was 16.2 percent,” labour market statistics manager Scott Ussher said. More>>

ALSO:

Ex-KPEX: Stuff Pulls Pin On Media Companies' Joint Ad-Buying Business

A four-way automated advertising collaboration between the country's largest media companies is being wound up after one of the four - Australian-owned Stuff - pulled the pin on its involvement as part of a strategic review of its operations ... More>>

Bus-iness: Transdev To Acquire More Auckland And Wellington Operations

Transdev Australasia today announced that it has agreed terms to acquire two bus operations in Auckland and Wellington, reaching agreement with Souter Investments to purchase Howick and Eastern Buses and Mana Coach Services. More>>

ALSO: