Food prices drop in October but up on year
Food prices fell 1.3% in October, following decreases of 1.0% and 1.3% in September and August respectively. These three falls followed seven consecutive monthly rises, Statistics NZ says.
In October 2011, lower prices were recorded for four of the five subgroups: fruit and vegetables (down 6.1%), meat, poultry, and fish (down1.5 %), grocery food (down 0.3%), and non-alcoholic beverages (down 0.9%). Higher prices were recorded for restaurant meals and ready-to-eat food (up 0.1%).
Statistics NZ says the most significant individual downward contributions came from seasonally lower prices for lettuce (down 37%) and tomatoes (down 29%). The most significant individual upward contributions came from higher prices for lamb (up 8.9% following a 9.6% fall in September) and potatoes (up 8.3%).
For the year to October 2011 food prices increased 1.1%, compared with 4.7% for the year to September 2011.
"The annual increase in food prices of 1.1% no longer includes last year's increase in GST," Statistics NZ prices manager Chris Pike said.
In the year to October 2011, four of the five subgroups had price increases: grocery food (up 2.7%), restaurant meals and ready-to-eat food (up 2.6%), non-alcoholic beverages (up 4.6%), and meat, poultry, and fish (up 1.8%). However, the fruit and vegetables subgroup decreased (down 8.8%), largely because of lower prices for vegetables (down 12%).