NZ food prices fall in August

NZ food prices fall in August as good growing conditions lower the cost of broccoli

By Tina Morrison

Sept. 13 (BusinessDesk) - New Zealand's food prices fell in August as good growing conditions brought down the price of broccoli.

Statistics New Zealand said food prices dropped 0.5 percent in August, and were down 0.8 percent after seasonal adjustment. The average price of a 350g head of broccoli was $2.09 in August 2018, down 77 cents from July. It is also about one-third cheaper than a year ago when prices reached $3.09 per head in August 2017.

“Broccoli is grown all year round, but is typically cheapest in December, at about $1.50 a head,” Stats NZ prices manager Geraldine Duoba said. “The cool weather this winter provided ideal growing conditions for broccoli.”

Fruit and vegetable prices fell 2.1 percent in the month, influenced by lower prices for lettuce, broccoli, and cucumber. Grocery food prices, however, rose 0.5 percent, influenced by higher prices for snack foods, butter, and eggs.

Food prices decreased 0.1 percent in the year to August. Fruit and vegetable prices fell 6.5 percent, reflecting lower broccoli, potato, and cucumber prices. This fall more than offset a 2.9 percent increase in restaurant meals and ready-to-eat food prices, which have shown higher than average inflation after the minimum wage increase in April this year.

“Fruit and vegetable prices rose strongly last year due to wet weather, peaking in August 2017,” Duoba said. “This month prices are closer to those experienced two years ago, in August 2016.”

(BusinessDesk)

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