Annual food price increase reaches 18 year high

For the year to June 2008, food prices rose 8.2 percent.

This is the highest annual increase since June1990, Statistics New Zealand said today.

All five subgroups recorded upward contributions to the annual increase, with the most significant upwardcontribution coming from higher prices for the grocery food subgroup (up 12.1 percent).

Within thissubgroup, the main contributions came from higher prices for fresh milk (up 22.0 percent), cheddar cheese(up 61.9 percent), bread (up 15.2 percent), and butter (up 86.6 percent).

The remaining four subgroups recorded, in order of significance, the following upward contributions: restaurant meals and ready-to-eat food (up 5.5 percent), fruit and vegetables (up 8.7 percent), meat, poultryand fish (up 4.4 percent), and non-alcoholic beverages (up 4.9 percent).

Food prices increased 1.3 percent in the June 2008 month.

The increase was mainly due to higher pricesfor the following subgroups: fruit and vegetables (up 5.2 percent), meat, poultry and fish (up 1.3 percent),and grocery food (up 0.4 percent).

Within the fruit and vegetables subgroup, the main contributor to the 5.2 percent increase were higherprices for fruit (up 9.7 percent).

The increase was driven in particular by oranges (up 28.9 percent), apples(up 13.1 percent), and peaches (up 79.0 percent).

Vegetable prices (up 2.6 percent) also madean upward contribution to this subgroup.

The increase was driven by higher prices for lettuce (up 34.4percent), which was partially offset by lower prices for tomatoes (down 18.8 percent).

The rise in prices for the meat, poultry and fish subgroup mainly came from higher prices for poultry (up 4.8percent)