Food prices rise 0.2 percent

Food prices rose 0.2 percent in November 2011, Statistics New Zealand said today. A seasonal fall in the price of fruit and vegetables (down 4.0 percent) was countered by rising prices in other subgroups, including grocery food, which rose 0.7 percent. "Grocery food prices rose in November after three consecutive monthly falls," Statistics NZ prices manager Chris Pike said.

Prices were seasonally lower for lettuce (down 33 percent), tomatoes (down 23 percent), and strawberries (down 37 percent). These three items were the largest individual contributors to the fall in the fruit and vegetables subgroup, partly offset by a seasonal rise in the price of nectarines (up 61 percent). Nectarines are still cheaper than this time last year. If fruit and vegetable prices had stayed the same as in October 2011, the food price index (FPI) would have risen 0.6 percent in November 2011.

Four of the five food subgroups showed price rises in November. The rise in grocery food prices (up 0.7 percent) reflected a reduction in the level of discounting for snack foods such as potato crisps (up 6.8 percent), chocolate (up 3.2 percent), and some types of biscuits.

For the year to November 2011, food prices increased 1.9 percent, compared with 1.1 percent for the year to October 2011. Four of the five food subgroups had price increases: grocery food (up 3.3 percent), restaurant meals and ready-to-eat food (up 2.4 percent), non-alcoholic beverages (up 4.2 percent), and meat, poultry, and fish (up 3.2 percent).

In the year to November 2011, the fruit and vegetables subgroup decreased 7.2 percent. This was influenced by lower prices for both vegetables (down 8.8 percent) and fruit (down 6.1 percent). The largest contributors to the falls were avocados (down 48 percent), tomatoes (down 25 percent), and potatoes (down 12 percent).

The food price index measures the rate of price change of food and food services purchased by households. Statistics NZ visits shops across New Zealand to collect prices for the FPI and check package sizes.

See:
Food Price Index: November 2011 – Information release