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

 



Westpac: More Job Opportunities, But Growth In Workers’ Earnings Remains Subdued

The Westpac McDermott Miller Employment Confidence Index rose 1.2 points in the December quarter, to a level of 106.9. This was the sixth straight rise in the index since the Covid-19 lockdown in 2020. Michael Gordon, Acting Chief Economist for Westpac, noted that the rise in the index has largely been driven by perceptions... More>>




Statistics: Card Spending Continues To Increase As COVID-19 Restrictions Ease

The busy Christmas period combined with easing COVID-19 restrictions helped to increase card spending in December 2021, Stats NZ said today... More>>


Westpac NZ: Warns About Sophisticated New Scam
Westpac NZ is warning New Zealanders about a sophisticated new scam that involves a fake Westpac investment prospectus.
The prospectus is formatted to resemble a Westpac document and includes professional-looking imagery... More>>


TradeMe: Job Market Ends 2021 On A High With Record Number Of Vacancies
The New Zealand job market finished 2021 on a high note, with the ball still firmly in the job hunters’ court, according to the analysis of 69,600 vacancies listed on Trade Me Jobs for the quarter ending 31 December (Q4)... More>>


Insurance Council of New Zealand: September South Island Windstorm Cost $36.5 M Raises 2021 Extreme Weather Claims Total To $321.6 M

Gale force winds and storms between 9 and 13 September 2021 resulted in insurers supporting communities to the tune of $36.5 m. This is a significant rise, of $16.7 m, on preliminary figures for the event and lifts the end of year total for all extreme weather events in 2021 to $321.6 m... More>>


Statistics: Building Consents Hit New Highs In November
There were a record 48,522 new homes consented in the year ended November 2021, Stats NZ said today. This was up 26 percent compared with the year ended November 2020... More>>