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Food Prices Increase 0.8 Percent

Food Prices Increase 0.8 Percent

Food prices increased 0.8 percent during July 2006, Statistics New Zealand said today. Rising prices for the fruit and vegetables subgroup was the main contributor to this, increasing 4.1 percent.

The increase in the fruit and vegetables subgroup was mainly driven by higher prices for lettuce (up 24.6 percent), cabbage (up 90.6 percent) and broccoli (up 23.4 percent). Partially offsetting these increases were decreases in prices for stone fruit (down 29.9 percent) and tomatoes (down 11.5 percent).

Food prices increased 3.4 percent for the year ended July 2006. The most significant contribution to this increase came from higher prices for the fruit and vegetables subgroup (up 16.4 percent).

The basket of goods that represent the movements for food prices has been reselected and reweighted and the index now uses June 2006 as its base month. Prices for fresh fruit and vegetables were seasonally adjusted up until the June 2006 month, but from the July 2006 month are seasonally unadjusted. See the Technical notes of this release for more information.

Brian Pink

Government Statistician

END

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