Grocery food prices rise

Food prices increased 0.3 percent in the May 2009 month, Statistics New Zealand said today. The most significant increase came from the grocery food subgroup (up 1.0 percent), which was driven by higher prices for bread (up 2.6 percent) and cakes and biscuits (up 2.9 percent). These increases were partly offset by lower prices for yoghurt (down 5.7 percent).

Other subgroups making upward contributions were non-alcoholic beverages (up 1.8 percent) and restaurant meals and ready-to-eat food (up 0.3 percent). Within these subgroups, the most significant increase came from higher prices for soft drinks (up 2.1 percent).

Prices for the meat, poultry and fish subgroup remained unchanged overall. The most significant individual upward contribution for this group came from higher prices for poultry (up 3.1 percent), while the most significant individual downward contribution came from lower prices for beef (down 6.7 percent).

The only subgroup to record a downward contribution in the May 2009 month was fruit and vegetables (down 2.6 percent), which was driven by lower prices for mandarins (down 45.3 percent), lettuce (down 18.9 percent), and kiwifruit (down 49.8 percent).

For the year to May 2009, food prices rose 6.8 percent with all five subgroups recording increases: grocery food (up 7.2 percent), meat, poultry and fish (up 11.3 percent), restaurant meals and ready-to-eat food (up 4.9 percent), non-alcoholic beverages (up 6.7 percent), and fruit and vegetables (up 3.1 percent).

Within these subgroups, the most significant upward contributions came from higher prices for bread (up 16.4 percent) and ready-to-eat food (up 5.2 percent). The most significant downward contributions came from lower prices for tomatoes (down 34.7 percent) and lettuce (down 34.4 percent).