Vegetables key contributor to fall in food prices

Food prices fell 0.8 percent in the December 2010 month, Statistics New Zealand said today. This follows
a 0.6 percent decrease in November 2010. Seasonal falls in vegetable prices were the key contributor to
lower food prices in November and December 2010.

Vegetable prices fell 7.9 percent in December with lower prices for tomato, lettuce, capsicum, cabbage,
and broccoli. This decrease follows a 9.9 percent fall in November. "Prices for green vegetables were
affected by unseasonal weather in September and October, and prices in November and December 2010
were still well above usual levels,” Statistics New Zealand prices manager Chris Pike said.

Grocery food prices fell 0.4 percent in December 2010. Snack foods contributed to this decrease, falling
4.9 percent. Milk, cheese, and egg prices decreased 1.1 percent in December 2010, however, they are
still 11.3 percent higher than a year earlier.

Meat, poultry, and fish prices rose 0.8 percent in December 2010. This was influenced by price rises for
sausages (up 8.7 percent) and fresh chicken (up 4.2 percent).

In the year to December 2010, food prices rose 4.2 percent, including a 2.2 percent increase in October,
when goods and services tax (GST) rose. All subgroups made upward contributions, with the most
significant coming from grocery food (up 4.9 percent) and restaurant meals and ready-to-eat food (up 4.0
percent). Fruit and vegetables (up 5.5 percent), meat, poultry, and fish (up 3.2 percent), and non-alcoholic
beverages (up 1.8 percent) also rose.

Dallas Welch (Mrs)

Acting Government Statistician

17 January 2011