Grocery food continues to drive food prices up

Food prices increased 0.8 percent in the February 2008 month, Statistics New Zealand said today. 

The higher prices for the grocery food subgroup (up 1.1 percent) accounted for half of the increase in the FoodPrice Index (FPI).

Grocery food has been the most significant contributor to the FPI movement forthe preceding five consecutive months.

Within the grocery food subgroup, the main contributors to the 1.1 percent increase were higher prices forfresh milk (up 4.0 percent), bread (up 3.4 percent) and potato crisps (up 5.5 percent).

The most significantdownward contribution came from lower prices for boxed chocolates (down 14.4 percent).

The meat, poultry and fish subgroup, which rose 1.6 percent, was mainly driven by higher prices for beef(up 2.7 percent) and fresh chicken (up 2.8 percent).

The most significant downward contribution came fromlower prices for lamb (down 5.4 percent).

The biggest downward subgroup contribution came from lower prices for fruit and vegetables (down 1.5percent) in the February 2008 month.

Fruit prices decreased 5.9 percent and vegetable prices increased2.0 percent.

For the year to February 2008, food prices rose 5.2 percent. Four subgroups recorded upwardcontributions.

The most significant upward contribution accounted for about two-thirds of the movement andcame from higher prices for the grocery food subgroup (up 9.0 percent).

This was followed by, in order ofsignificance, restaurant meals and ready-to-eat food (up 4.2 percent), meat, poultry and fish (up 3.9percent) and non-alcoholic beverages (up 4.8 percent).

The only downward contribution came from the fruitand vegetables subgroup (down 2.5 percent).