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

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news