Cost of dairy products continues to fall

Cost of dairy products continues to fall

11 August 2016

Food prices decreased 1.3 percent in the year to July 2016, Statistics New Zealand said today. This follows a decrease of 0.5 percent in the year to June 2016.

Grocery food prices decreased 2.9 percent in the year, influenced by all the main dairy products decreasing in price:

• cheese (down 11 percent)

• fresh milk (down 3.2 percent)

• yoghurt (down 9.7 percent)

• butter (down 11 percent).

“The price of cheese has continued to fall in the year to July 2016, to its lowest price since October 2009," consumer prices manager Matt Haigh said. "The average price of a kilo block of the cheapest available mild cheddar cheese was $7.39 in July 2016, down from $9.07 in July 2015.”

Prices for snack foods, sauces, and breakfast cereals also decreased in the year to July 2016.

Meat, poultry, and fish prices decreased 2.1 percent in the latest year, with lower prices for chicken (down 9.9 percent) partly offset by higher prices for beef (up 4.6 percent).

Fruit and vegetable prices decreased 0.9 percent in the year. Lower prices for tomatoes, kumara, mandarins, and lettuce were partly offset by higher cucumber prices. Cucumber prices are now at their highest level since August 1995.

Small fall in food prices in July month

Food prices fell 0.2 percent in July 2016, following a 0.4 percent rise in June 2016. After adjusting for seasonal effects, food prices fell 0.3 percent in July 2016.

Grocery food prices fell 0.7 percent in July, influenced by lower prices for sauces, cakes and biscuits, and snack foods. Prices for dairy products, except fresh milk, also fell.

Fruit and vegetable prices rose 0.1 percent in July, down 1.1 percent after adjusting for seasonal effects. Higher prices for lettuce and tomatoes were partly offset by lower prices for avocados. Avocado prices have been at historically high levels in recent months with lower prices in July influenced by the supply of new-season fruit.

For more information about these statistics:

• Visit Food Price Index: July 2016

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