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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news