NZ food prices fall for second month, rise on the year

NZ food prices fall for second month, rise on the year

By Jason Krupp

Jan. 17 (BusinessDesk) - New Zealand food prices fell for a second month in December, trimming the gain in the annual grocery bill.

The food price index fell 0.8% in the month compared to November, when prices declined 0.6%, according to figures released by Statistics New Zealand. Still, compared to the same month a year ago, prices rose 4.2%, reflecting the 2.5% increase to GST in October, and stronger dairy prices.

In December, fruit and vegetables accounted for the biggest price declines, down 4% compared to the previous month, followed by non-alcoholic beverages, down 2.7%, and grocery food, down 0.4%. The most significant individual downward contributions came from tomatoes, which fell 37.1%, and lettuce, which fell 19.6%.

Meat, poultry and fish led price increases in the month, gaining 0.8% compared to November, with restaurant meals and ready-to-eat food up 0.2%. Apples saw the biggest individual price increase in the month, up 14.2%, followed by chocolate novelty bars, which rose 10.5%.

On an annual basis all five subgroups on the index rose, with grocery food up 4.9% compared to December 2009, restaurant meals and ready-to-eat food up 4%, fruit and vegetables up 5.5%, meat, poultry and fish up 3.2%, and non-alcoholic beverages up 1.8%.

The most significant individual price increase came from fresh milk, which rose 14.6% compared to the same month in the previous year.

(BusinessDesk)

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