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).

Comment

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.

ENDS

This, along with an extensive range of other publications, is available on our web site http://research.gm.db.com

In order to read our research you will require the Adobe Acrobat Reader which can be obtained from their website http://www.adobe.com for free.

For answers to your EMU questions, check Deutsche Bank's EMU web site http://www.db.com/emu or email our helpline business.emu@db.com.


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Other Windy Cities: Auckland-Chicago Named A Top 10 ‘Most Exciting’ New Route

The inclusion of Auckland-Chicago on Lonely Planet’s Where to fly in 2019? The 10 most exciting new flight routes list comes just two weeks before Air New Zealand prepares to celebrate its inaugural flight to Chicago’s O’Hare International Airport on 30 November. More>>

Deadly Strain: ESR Ups Its Reporting On Meningococcal Disease

The increasing number of cases of Group W Meningococcal disease (MenW) has prompted ESR to increase its reporting on the disease to the Ministry of Health. ESR has upped its reporting to weekly. More>>

ALSO:

Very Small Things: "Game-Changing" 3D Printing Technology Launched

New Zealand microfabrication researchers Andrea Bubendorfer and Andrew Best, the co-inventors of a new way of fabricating very small things with Laminated Resin Printing (LRP), are part of Callaghan Innovation’s MicroMaker3D team launching the new patent pending technology in the US this week. More>>

ALSO:

Wainui: Major Infrastructure Partnership For North Auckland

Minister of Housing and Urban Development Phil Twyford and Auckland Mayor Phil Goff today announced a partnership that will fund $91 million of roading and wastewater infrastructure to support the building of 9000 homes... More>>

ALSO: