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Food price rises hit 11 year high


Bill English National Finance Spokesman

14 June 2001

Food price rises hit 11 year high

Low and fixed income families are feeling the pain after a 6.2 percent increase in food prices in the year to May, National's Finance spokesman Bill English said today.

"Nearly two thirds of the food items measured in the Food Price Index increased in price during May, with an overall rise of 0.3 percent for the month.

"The increase in the year to May is the highest in over a decade, and low income families are really suffering. They've had to get through the last year with an average wage increase of around 2.5 percent, with half of those families getting no wage increase at all. Those household budgets are now stretched to breaking point.

"The possibility of major electricity price rises will only add to the uncertainty many low and fixed income families are now feeling because of this significant rise in food prices," Bill English said.

Ends

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