Food prices up 0.3 percent in March

Food prices rose 0.3 percent in the March 2011 month, after a relatively flat (up 0.1 percent) February 2011 month, Statistics New Zealand said today. Food prices in March were up 5.5 percent on a year earlier.

The meat, poultry, and fish subgroup had the largest impact on food prices in March, rising 1.5 percent. This was influenced by price rises for beef (up 3.8 percent), processed meat (up 1.4 percent), and lamb (up 3.0 percent).

Grocery food prices rose 0.4 percent in March 2011, with higher prices for bread (up 4.6 percent) and cakes and biscuits (up 4.3 percent). "Bread prices are now 2.4 percent higher than when they previously peaked, in May 2009," Statistics NZ prices manager Chris Pike said.

Fresh milk prices fell slightly (down 0.2 percent) in March, down from their peak in February. Supermarket chains announced in February that prices would not increase for the rest of 2011.

The only subgroup providing a downward contribution to food prices in March was the fruit and vegetables subgroup (down 1.6 percent). This was influenced by seasonal price falls for apples (down 25.4 percent), potatoes (down 10.8 percent), and grapes (down 29.8 percent).

In the year to March 2011, food prices increased 5.5 percent. This included a 2.2 percent increase in October 2010, when goods and services tax rose. All subgroups made upward contributions, with the most significant coming from grocery food (up 5.5 percent) and fruit and vegetables (up 10.4 percent). Restaurant meals and ready-to-eat food (up 4.2 percent), meat, poultry, and fish (up 3.7 percent), and non-alcoholic beverages (up 5.3 percent) also increased.

Fresh milk prices were up 9.3 percent in the year to March 2011. Prices also increased for beef (up 8.2 percent) and lamb (up 16.4 percent).