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


Deutsche Bank: NZ Food Price Index - Nov 1999

Data Flash (New Zealand)
NZ Food Price Index
Food Price Index:::::

Food Price Index Fruit & Vegetable

::::::::::mom. % ann. % mom. %::::: ann. %

Jun- 99 -0.7::::: 1.4::::: -6.3::::::::::0.4
Jul- 99 0.5::::: 1.1::::: -1.8::::: -7.3
Aug- 99:::::::::: -0.6::::: -0.6::::: -3.0::::: -11.0
Sep- 99:::::::::: 0.3::::: -0.3::::: -1.4::::: -11.2
Oct- 99:::::::::: -0.6::::: -1.2::::: -6.6::::: -15.9
Nov-99:::::::::: +0.5::::: -0.3::::::::::-::::: -13.8

Source: DB Global Markets Research, Statistics NZ

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 rose 0.5% mom in November, following a 0.6% mom decline in October. Food prices are now 0.3% lower than they were in November 1998.

The most significant contribution to the increase in the November index came from the grocery foods, soft drink & confectionery (+0.7%) and meat fish & poultry subgroups (+1.5%). Somewhat offsetting these increases, the fruit & vegetable subgroup (-0.1%) made the only downward contribution to aggregate food prices - the decline in this group largely reflects favourable climatic conditions. Food prices excluding the volatile fresh fruit and vegetable components rose +0.6% for the month (+1.3% yoy).


The 0.5% mom increase in food prices in November was in line with average market expectations. Despite the reasonably subdued state of food price inflation, a number of largely transitory factors (local authority rates, car and petrol prices) suggests a sharp pick- up in CPI inflation over the December quarter - we expect Q4 CPI of +0.9% qoq/+2.0% yoy.

In spite of a projected upturn in CPI inflation over the first half of 2000, we do not assume a cash rate rise to occur at the interim assessment date of 19 January, but instead expect a +50 bp move at the 15 March MPS. Nevertheless, the Bank may consider a January move if the NZD has a disappointing start to the new year, suggesting that interest rates will need to play a more significant part in the tightening process.


This, along with an extensive range of other publications, is available on our web site

In order to read our research you will require the Adobe Acrobat Reader which can be obtained from their website for free.

For answers to your EMU questions, check Deutsche Bank's EMU web site or email our helpline

© Scoop Media

Business Headlines | Sci-Tech Headlines


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>



Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news