Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


NZ food prices fall in March on cheaper cakes and candy

NZ food prices fall in March on cheaper cakes and candy

By Suze Metherell

April 11 (BusinessDesk) – New Zealand food prices fell in March as cheaper cakes and candy drove a fall in grocery prices, and offset more expensive meat and produce.

The food price index fell 0.3 percent in March following a 1 percent fall in February, according to Statistics New Zealand. Food prices rose 1.2 percent on an annual basis, the first time all five components of the index increased since September 2011.

The monthly decline was led by a 1.6 percent drop in grocery prices to their lowest level since August as cakes and biscuit prices and confectionary, nuts and snacks both dropped 3.5 percent. In the year grocery prices made the smallest gains of all the subgroups, up 0.2 percent, led by an 8.8 percent gain in fresh milk and a 7.1 percent rise in cheese prices.

Last month the Reserve Bank embarked on a tightening cycle, lifting interest rates 25 basis points to 2.75 percent as it tries to stem inflationary pressure in the economy. Food prices make up almost 19 percent of the consumer price index, the inflation measure used by the central bank. First-quarter CPI is due for release next week.

“Despite food price inflation remaining subdued, inflation indicators point to a pick-up in other inflation areas,” Christina Leung, economist at ASB Bank, said in a note. “Overall, the result is in line with our expectations, and we expect the first quarter CPI released next Wednesday will show a 0.6 percent increase.”

Today’s figures showed meat, poultry and fish prices rose 0.9 percent in March, the biggest increase across the subgroups. Meat, poultry and fish prices rose 1.6 percent, with mutton, lamb and hogget prices up 15 percent in the year.

Restaurant meals and ready-to-eat food prices rose 0.4 percent in March, and were up 1.9 percent in the year, driving the annual gain.

Prices of non-alcoholic beverages increased 0.2 percent in the month for annual increase of 2.7 percent. Non-alcoholic beverages led the annual increase, with packaged coffee and tea prices climbing 5.3 percent.

Fruit and vegetable prices rose 0.5 percent in March, with cheaper apples and kumara. On an annual produce prices rose 1.5 percent with more expensive tomatoes, oranges and mandarins.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade: NZ Trade Deficit Widens To A Record In September

Oct. 27 (BusinessDesk) - New Zealand's monthly trade deficit widened to a record in September as meat exports dropped to their lowest level in more than three years. More>>


Animal Welfare: Cruel Practices Condemned By DairyNZ Chief

DairyNZ chief executive Tim Mackle says cruel and illegal practices are not in any way condoned or accepted by the industry as part of dairy farming.

Tim says the video released today by Farmwatch shows some footage of transport companies and their workers, as well as some unacceptable behaviour by farmers of dragging calves. More>>


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


International Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news