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

 


NZ food prices rise in May on expensive vegetables

NZ food prices rise in May on expensive vegetables

By Suze Metherell

June 13 (BusinessDesk) - New Zealand food prices rose in May as a drop off in the price of meat, poultry and fish was offset by a 16 percent gain in vegetables.

The food price index advanced 0.6 percent in May, matching April's 0.6 percent gain, according to Statistics New Zealand. On an annual basis, food prices have increased every month for the past year with May's annual gain picking up to 1.8 percent from a 1.5 percent advance in April, with all five components gaining.

The monthly increase was spurred by a 6.9 percent jump in fruit and vegetable prices, as vegetable prices climbed 16 percent, offsetting a 3.9 percent drop in fruit prices, largely weighed on by discounted bananas. On an annual basis fruit and veggies are 5.6 percent more expensive than they were a year ago, as broccoli, oranges and tomatoes become more costly, offsetting cheaper capsicums and bananas.

The Reserve Bank is watching the pace of rising consumer prices, of which food prices contribute almost 19 percent, having flagged increased price pressures as a reason behind its shift to tighter monetary policy this year. Yesterday governor Graeme Wheeler hiked interest rates for a third time since March to 3.25 percent to curb inflation, and surprised speculators affirming the track of future hike rates after April’s first quarter consumers price index showed a slower-than-expected pace of inflation. Second quarter CPI is due next month.

Meat, poultry and fish prices fell 1.5 percent in May, to be the largest downward contribution in the month, as the beef, pork and poultry all recorded declines, while lamb had a marginal increase. On an annual basis price rose 0.5 percent, meat and poultry prices are now 2.4 percent below their October peak, while beef has come off last month's peak and lamb is 17 percent below its August 2011 peak.

Grocery prices fell 0.1 percent in May, as breakfast cereals dropped 2.5 percent and preserved milk fell 3 percent in the month. In the year prices increased 0.9 percent, as milk cheese and egg prices surged 8 percent, with fresh milk costing 11 percent more than it did last year, to be 1 percent above its previous peak in February 2011, Statistics NZ said.

The price of Restaurant meals and ready-to-eat food edged up 0.1 percent in the month, for an annual gain of 2.1 percent. Non-alcoholic beverages rose 0.2 percent in May, and increased 2.7 percent on a yearly basis.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

f work for Pumpkin Patch staff

Retail: Pumpkin Patch Brand, IP Sold To Catch Group

The receivers of failed children's clothing retailer Pumpkin Patch have confirmed that the company's brand and intellectual property have been sold to Australian online retailer Catch Group. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news