NZ food prices edge up in January

NZ food prices edge up in January

By Sophie Boot

Feb. 12 (BusinessDesk) - New Zealand food prices rose in January, snapping five months of falling prices, with fruit, vegetables, meat and milk all more expensive.

The food price index increased 2 percent in January, having previously fallen 0.8 percent in December, according to Statistics New Zealand. Prices declined 0.6 percent on an annual basis.

Fruit prices advanced 5.5 percent in January, influenced by higher prices for strawberries and apples. The cost of apples rose 14.5 percent to an average of $3.95 per kilogram in the month. Vegetable prices gained 3.4 percent in the month, with broccoli, tomatoes and lettuce prices all increasing about 20 percent.

Meat, poultry and fish prices rose 3.3 percent, following a 2.7 percent fall in December. Chicken prices, which had reached a seven-year low in December, increased 10 percent, with chicken breasts now costing an average of $15.45 per kilogram. Chicken prices fell 5.4 percent on an annual basis, and have been declining annually since June 2015.

Food prices account for about 17 percent of the consumers price index, which has tracked below the Reserve Bank's target band of between 1-and-3 percent for more than a year.

Today's data show grocery food prices advanced 1.6 percent in January, and were down 2.1 percent on an annual basis. The price of fresh milk rose last month, up 4.9 percent. The average price of the cheapest available two litre bottle of blue-top milk was $3.29, from $3.13 in December.

Dairy prices are still lower on an annual basis across most products, with fresh milk prices down 9 percent and yoghurt 11 percent cheaper, in a year where global dairy prices collapsed. However, cheese and chocolate were more expensive, with cheese prices up 4.7 percent for the year.

Non-alcoholic beverages prices rose 2.2 percent in January and were up 0.2 percent on an annual basis, while prices for restaurant meals and read-to-eat food increased 0.2 percent in the month for a 2 percent rise in 2015.

(BusinessDesk)

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