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


Economic Note - New Zealand Food Price Index

Economic Note (New Zealand) NZ Food Price Index - August 1999

Key Points

The food price index (FPI) comprises 18% of the CPI regimen and is very
volatile on a monthly basis. The food price index fell 0.6% mom in
August, following a 0.5% mom increase in July. Food prices are now 0.6%
lower than they were in August 1998 - the first decline in annual food
price inflation since February 1996.

The most significant contribution to the decrease in the August index came
from the grocery foods, soft drinks and confectionery subgroup (-0.9%) and
the fruit & vegetable subgroup (-2.5%). Food prices excluding the
volatile fresh fruit and vegetable components fell 0.3% mom (+0.6% ann.).

FPI Food Price Fruit &
Index Vegetable Index
mom.% ann.% mom. % ann. %

Mar-99 -0.8 2.4 -4.7 -1.3

Apr-99 0.0 1.7 0.4 0.3

May-99 -0.4 2.4 -1.1 5.3

Jun-99 -0.7 1.4 -4.8 0.7

Jul-99 0.5 1.1 -1.4 -5.4

Aug-99 -0.6 -0.6 -2.5 -8.9


The 0.6% mom decline in food prices in August was considerably below
market expectations for a 0.5% mom increase. The fall in the grocery
food, soft drinks & confectionery subgroup for the month largely reflects
a number of items having moved on "special". The decrease in the fruit
and vegetable subgroup results from a return to good winter growing
conditions following the summer drought. Despite the fall in annual food
prices over the first half of this year, quarterly CPIX inflation outcomes
of +0.8% qoq and +0.6% qoq over the September and December quarters
respectively are likely to result. The projected pick-up in CPIX
inflation over the second half of this year is expected to be driven by a
number of one-off influences. This includes a significant rise in local
authority rates (estimated contribution: +0.2%) and the rise of around 12%
in petrol prices experienced (direct influence: +0.4%). The rise in
inflationary pressures from these sources reinforces our expectation that
the RBNZ is likely to raise the OCR by 50 bps at the 17th November
Monetary Policy Statement.

© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news