Vegetable prices rise as temperatures fall

Food prices increased 0.6 percent in the July 2009 month, Statistics New Zealand said today. Higher prices for vegetables accounted for nearly all of the increase in the food price index (FPI), with cold weather hampering growing conditions. Vegetable prices are 12.3 percent higher than in July last year, but are not quite at the levels seen in August 2008.

In the July 2009 month, fruit and vegetable prices rose 3.1 percent, driven by another significant rise in lettuce prices. Lettuce prices more than doubled in June and rose further by 41.6 percent in July. Prices for two-thirds of the fresh vegetables tracked in the FPI increased in July 2009. While vegetable prices were up 6.4 percent, fruit prices were down 2.3 percent.

Grocery food prices rose 0.5 percent in July 2009, while meat, poultry and fish prices fell 0.7 percent, coming off a record high in June 2009.

For the year to July 2009, food prices rose 8.4 percent, with all five subgroups recording increases: grocery food (up 7.8 percent), meat, poultry and fish (up 12.4 percent), fruit and vegetables (up 12.2 percent), restaurant meals and ready-to-eat food (up 4.0 percent), and non-alcoholic beverages (up 7.1 percent).

Within these subgroups, the most significant upward contributions came from higher prices for prepared meats and smallgoods (up 19.0 percent), bread (up 13.5 percent), and cakes and biscuits (up 16.7 percent). The most significant downward contributions came from lower prices for cheddar cheese (down 15.9 percent) and butter (down 21.6 percent).

Geoff Bascand
13 August 2009
Government Statistician