Food prices flat in February but up for year

Food prices were flat (up 0.1 percent) in the February 2011 month, but up 5.3 percent on a year earlier, Statistics New Zealand said today.  

“A seasonal fall in fruit and vegetable prices in February offset rises in grocery food prices, particularly for dairy products,” Statistics New Zealand prices manager Chris Pike said.

Grocery food prices rose 0.6 percent in February 2011, with higher prices for milk, cheese, and eggs (up 1.5 percent) being responsible for nearly two-thirds of the grocery food increase. Yoghurt prices rose 4.5 percent and fresh milk prices rose 1.1 percent. Butter prices rose 3.5 percent.

The fruit and vegetables subgroup had the largest impact on food prices in February, falling 1.7 percent. This was influenced by a seasonal fall in apple prices (down 21.3 percent). The fruit and vegetables subgroup usually falls in February.

In the year to February 2011, food prices increased 5.3 percent. This included a 2.2 percent increase in October, when the goods and services tax rose. All subgroups made upward contributions for the year. The most significant contributors were grocery food (up 5.4 percent) and fruit and vegetables (up 10.1 percent), with higher prices for milk, cheese, and eggs (up 9.5 percent) and vegetables (up 11.5 percent). 

Most prices were collected before the 22 February Christchurch earthquake.

Geoff Bascand 11 March 2011

Government Statistician