Food prices fall 0.9 percent in September

Food prices fell 0.9 percent in the September month, reflecting lower prices for grocery food and seasonally lower prices for fruit and vegetables, Statistics New Zealand said today.

"Food prices fell in September, reflecting cheaper grocery food prices. Grocery food prices are now nearly 3 percent cheaper than three months ago in June," prices manager Chris Pike said.

Three of the five subgroups contributed to the fall in the food price index (FPI): grocery food (down 1.6 percent), fruit and vegetables (down 2.2 percent), and non-alcoholic beverages (down 0.5 percent).

The most significant individual fall in September came from seasonally lower prices for capsicums (down 32 percent). With the arrival of new season stock, the average price of capsicums fell from a high of $22.28 per kilogram in August 2012 to $15.05 per kilogram in September 2012. Prices were also lower for plain biscuits (down 18 percent), cucumber (down 33 percent), sweets (down 12 percent), strawberries (down 20 percent), and lettuce (down 12 percent).

Broccoli prices doubled in September, caused by an early spring shortage. Chocolate biscuits (up 15 percent), porterhouse/sirloin beef steak (up 6.0 percent), and pumpkin (up 62 percent) also made significant upward contributions.

For the year to September 2012, food prices decreased 0.3 percent. This is the fifth consecutive annual fall in food prices. Three of the five subgroups made downward contributions to the FPI: grocery food (down 3.5 percent), non-alcoholic beverages (down 1.3 percent), and meat, poultry, and fish (down 0.8 percent).

Prices decreased for fresh milk (down 9.2 percent), butter (down 30 percent), cheddar cheese (down 15 percent), and lettuce (down 20 percent). Higher prices were recorded for tomatoes (up 69 percent from $7.23 to $12.26 per kilogram), kumara (up 90 percent), broccoli (up 36 percent), and chicken pieces (up 5.0 percent).

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: September 2012  –  Information release