Food prices increase 1.4 percent in June

Food prices rose 1.4 percent in the June 2012 month, reflecting seasonally higher vegetable prices, Statistics New Zealand said today.

"While food prices rose in June 2012, they were 0.2 percent lower than they were in June last year," prices manager Chris Pike said.

The most significant increase in June came from the fruit and vegetables subgroup (up 9.0 percent), mainly due to a seasonal increase in tomato prices (up 42 percent, following a 58 percent increase in May 2012). Seasonally higher prices were also recorded for avocados (up 37 percent), nectarines (up 51 percent), broccoli (up 54 percent), and lettuce (up 17 percent).

Prices for the meat, poultry, and fish subgroup increased 1.3 percent, with fresh chicken up 4.9 percent and ham up 12 percent.

The grocery food subgroup rose 0.3 percent, with increases for chocolate bars and blocks (up 9.3 percent), gourmet cheese such as camembert (up 7.6 percent), and boxes of chocolates (up 14 percent). Bread prices fell 2.8 percent. Fresh milk prices (down 0.7 percent) dropped for the third month in a row.
Prices for the restaurant meals and ready-to-eat food subgroup rose 0.3 percent, with small increases in most categories.

The non-alcoholic beverages subgroup (down 1.5 percent) was the only one to fall. This was mainly due to increased discounting on soft drinks (down 2.0 percent) and tea (down 6.2 percent).

For the year to June 2012, food prices fell 0.2 percent. Three of the five food subgroups made downward contributions to the food price index (FPI). Lower prices were recorded for fruit and vegetables (down 2.6 percent), non-alcoholic beverages (down 2.4 percent), and grocery food (down 0.6 percent). Higher prices were recorded for restaurant meals and ready-to-eat food (up 1.5 percent) and meat, poultry, and fish (up 2.2 percent).

Fresh milk prices were down 8.0 percent on June last year, and prices for cheddar cheese (down 16 percent) and butter (down 24 percent) were also lower.

The FPI 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 also:  Food Price Index: June 2012  –  Information release