Food prices fall 0.8 percent in September

Food prices fall 0.8 percent in September

13 October 2014

Food prices fell 0.8 percent in September 2014, Statistics New Zealand said today. This fall follows a 0.3 percent rise in August and a 0.7 percent fall in July.

"Lower food prices in September came from seasonally cheaper vegetables, partly countered by a rise in meat prices," prices manager Chris Pike said.

Fruit and vegetable prices fell 6.5 percent. Lower vegetable prices (down 11 percent) were the most significant contributor to the monthly fall in food prices, with price falls for lettuce, tomatoes, cucumber, and capsicums.

Grocery food prices fell 0.2 percent, with lower prices for butter and cheese. Prices for confectionery, nuts, and snacks (down 0.9 percent) also fell. Prices were higher for cakes and biscuits (up 4.4 percent), and yoghurt.

Meat, poultry, and fish prices rose 1.2 percent, influenced by higher prices for processed meat, pork, lamb, and beef.

Non-alcoholic beverage prices rose 0.6 percent, influenced by less discounting on soft drinks.

Annual change in prices

Food prices decreased 0.1 percent in the year to September 2014, following a 0.7 percent increase in the year to August 2014.

In the year to September 2014, grocery food prices decreased 1.6 percent, influenced by lower bread prices (down 14 percent). Supermarkets discounted some of their own-brand bread to about $1.00 in July and August. Confectionery, nuts, and snacks (down 2.1 percent) also influenced the decrease. Prices increased for some dairy products, including fresh milk and yoghurt.

Fruit and vegetable prices decreased 3.3 percent. Lower vegetable prices (down 5.7 percent) included decreases for tomatoes, kumara, and avocados.

In the year to September 2014, restaurant meals and ready-to-eat food prices increased 1.7 percent.

Meat, poultry, and fish prices increased 2.2 percent, influenced by higher prices for chicken, lamb, and beef.

Non-alcoholic beverage prices increased 2.9 percent, influenced by price increases for soft drinks, waters, and juices.

The food price index (FPI) measures the rate of price change of food and food services purchased by households. Statistics NZ visits shops across New Zealand to collect prices for the FPI and check package sizes.

For more information about these statistics:

• Visit Food Price Index: September 2014

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