Seasonal rise in vegetable prices

Food prices rose 1.4 percent in June 2011, reflecting a seasonal rise in vegetable prices. Annually, food prices were up 7.5 percent on a year earlier, Statistics New Zealand said today. This is similar to June 2010, when prices rose 1.3 percent for the month.

The fruit and vegetables subgroup had the largest impact on food prices in June, rising 12.2 percent. This rise in fruit and vegetable prices was influenced by price rises for tomatoes (up 56.9 percent), capsicums (up 43.7 percent), and cucumber (up 35.6 percent). Lettuce also experienced a seasonal increase, rising 42.7 percent, following a 45.6 percent increase in May. "Tomato and capsicum prices rose more than they usually do in June, reflecting a supply shortage caused by the January floods in Queensland," Statistics NZ prices manager Chris Pike said.

In June, meat, poultry, and fish prices fell 3.2 percent from their peak in May. Four of the five most significant price falls in the June food price index were from the meat, poultry, and fish subgroup. Poultry prices fell (down 8.0 percent), with fresh chicken prices down 10.4 percent. Beef prices also fell (down 3.0 percent), influenced by an increase in the level of discounting on porterhouse/sirloin beef steak (down 7.1 percent). Lamb prices rose 1.2 percent and are now at their highest-recorded level.

Grocery food prices rose 0.7 percent in June. Rises in chocolate and cheese prices contributed to this increase, up 3.3 percent and 3.1 percent, respectively. These price rises were partly offset by a 5.1 percent fall in yoghurt prices (influenced by an increase in the level of discounting).

In the year to June 2011, food prices rose 7.5 percent. This included a 2.2 percent rise in October 2010, when goods and services tax rose.

All subgroups made upward contributions to the increase in the food price index in the year to June 2011. Grocery food (up 8.0 percent) made the most significant contribution. Fruit and vegetables (up 15.7 percent), restaurant meals and ready-to-eat food (up 4.5 percent), non-alcoholic beverages (up 8.1 percent) and meat, poultry, and fish (up 3.5 percent) also increased.

Vegetable prices rose 23.5 percent and fresh milk prices rose 9.4 percent in the year to June 2011.

FoodPriceIndexJun11.pdf

Geoff Bascand Government Statistician

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