Food prices rise 1.3 percent in January

Food prices rise 1.3 percent in January

13 February 2015

In January 2015, food prices rose 1.3 percent, Statistics New Zealand said today. This follows a 0.3 percent rise in December and a 0.5 percent fall in November.

“Seasonally higher fruit and vegetable prices were partly countered by lower prices for chicken, energy drinks, and yoghurt,” prices manager Chris Pike said.

In January, fruit and vegetable prices rose 8.3 percent, influenced by higher prices for both fruit and vegetables. Apples, strawberries, kiwifruit, tomatoes, and lettuce all contributed to the price rise with apple prices being at their highest level since the series began – averaging $4.77 per kilo, compared with $4.20 a year ago. New season apples arrived later than usual this January, and in smaller volumes, due to adverse weather conditions in spring. Kiwifruit prices are now at their highest level since peaks in February and March 2009.

Grocery food prices rose 0.6 percent, with higher prices for confectionery, nuts, and snacks (up 2.3 percent) reflecting less discounting on chocolate. Lower prices for yoghurt partly countered this rise.

Meat, poultry, and fish prices rose 0.5 percent, with higher prices for lamb being partly offset by lower prices for chicken. Chicken prices fell 2.8 percent from their peak last month.

Prices for non-alcoholic beverages fell 0.4 percent, reflecting more discounting on energy drinks, countered by less discounting on soft drinks.

Annual change in prices

In the year to January 2015, food prices increased 1.2 percent, following a 1.0 percent increase in the year to December 2014.

Fruit and vegetable prices increased 7.0 percent. Prices were higher for lettuce, potatoes, pumpkin, apples, and nectarines, while prices for kumara and tomatoes were lower.

Meat, poultry, and fish prices increased 2.8 percent, reflecting higher prices for beef (up 6.4 percent) and processed meat (up 2.8 percent).

Grocery food prices decreased 1.7 percent in the year to January, influenced by lower bread prices (down 12 percent). Supermarkets discounting some own-brand bread over the latter part of the last year contributed to the lower bread prices. Prices for chocolate, butter, and cheese also decreased. Higher prices for fresh milk and sauces partly offset the price decreases.

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: January 2015
•

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