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


Comment

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

 

Mycoplasma Bovis: More Properties Positive

One of the latest infected properties is in the Hastings district, the other three are within a farming enterprise in Winton. The suspect property is near Ashburton. More>>

ALSO:

Manawatū Gorge Alternative: More Work Needed To Choose Route

“We are currently working closely and in partnership with local councils and other stakeholders to make the right long-term decision. It’s vital we have strong support on the new route as it will represent a very significant long-term investment and it will need to serve the region and the country for decades to come.” More>>

ALSO:

RBNZ: Super Fund Chief To Be New Reserve Bank Governor

Adrian Orr has been appointed as Reserve Bank Governor effective from 27 March 2018, Finance Minister Grant Robertson says. More>>

ALSO:

ScoopPro: Helping PR Professionals Get More Out Of Scoop

Scoop.co.nz has been a fixture of New Zealand’s news and Public Relations infrastructure for over 18 years. However, without the financial assistance of those using Scoop in a professional context in key sectors such as Public Relations and media, Scoop will not be able to continue this service... More>>

Insurance: 2017 Worst Year On Record For Weather-Related Losses

The Insurance Council of New Zealand (ICNZ) announced today that 2017 has been the most expensive year on record for weather-related losses, with a total insured-losses value of more than $242 million. More>>

ALSO: