Food prices fall in February on cheaper fruit and veg, meat

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

New Zealand food prices fell last month, led by cheaper meat and in-season fruit and vegetables, though milk rose to a nine-month high.

The food price index fell 0.3 percent in February, following a 1.9 percent drop a month earlier, in its sixth decline in seven months, according to Statistics New Zealand. Annual food prices decreased 0.1 percent.

Fruit and vegetable prices fell 1.6 percent in February, with cheaper apples and grapes, while meat, fish and poultry declined 1.4 percent, led by discounted porterhouse/sirloin steak and chicken pieces.

Grocery prices were unchanged in the month, though fresh milk prices rose 2.1 percent to their highest level since May last year. Non-alcoholic beverage prices rose 1.3 percent, while restaurant means and ready-to-eat food prices slipped 0.1 percent.

Food prices account for almost 19 percent of the consumers price index, which is sitting below the Reserve Bank's target band at 0.9 percent.

Central bank governor Graeme Wheeler will review monetary policy tomorrow and is expected to keep the official cash rate at 2.5 percent, with benign inflation giving him scope to help invigorate the economic recovery facing a drought across the North Island.

But a bubbling Auckland property market has been cited as a threat to future financial stability.

"Food prices have been subdued over the past year and a key contributor to the subdued headline CPI," ASB economist Jane Turner says in a note. "Over the coming year, we are likely to see the mixed influence of lower beef and lamb prices versus higher dairy prices."

Today's figures showed fruit and vegetable prices were up 6.3 percent annually, with non-alcoholic drinks rising an annual 0.2 percent and restaurant meals and read-to-eat food prices up 0.7 percent.

Meat, poultry and fish prices fell an annual 2.1 percent and grocery prices shrank 2.1 percent in the year.

(BusinessDesk)


This article is tagged with the following keywords. Find out more about MyNBR Tags

2 Comments & Questions

Commenter icon key: Subscriber Verified

They'll be even cheaper when Shearer/Labour removes the GST from them all.

Will Big Macs & the salads at McD's be cheaper though as a result?

Reply
Share
  • 0
  • 0

Now we need statistics relating to unit (KG) sales of Fruit and Veges - if price drops mean people eat more then the evidence will be there.

However I think removing GST would mean supermarket operators would simply continue their usual practice of charging as much as they can (15% exra into their pockets).

Reply
Share
  • 0
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7505 0.0003 0.04%
AUD 0.9675 0.0002 0.02%
EUR 0.6714 0.0001 0.01%
GBP 0.4887 0.0002 0.04%
HKD 5.8207 0.0025 0.04%
JPY 90.1710 -0.0310 -0.03%

Commods

Commodity Price Change Time
Gold Index 1208.2 -4.400 2015-03-02T00:
Oil Brent 60.2 -2.390 2015-03-02T00:
Oil Nymex 49.6 -0.160 2015-03-02T00:
Silver Index 16.4 -0.080 2015-03-02T00:

Indices

Symbol Open High Last %
NZX 50 5892.7 5894.3 5892.7 -0.02%
NASDAQ 4973.4 5008.6 4963.5 0.90%
DAX 11408.3 11455.1 11401.7 0.08%
DJI 18134.0 18288.6 18132.7 0.86%
FTSE 6946.7 6974.3 6946.7 -0.09%
HKSE 24996.8 24997.8 24823.3 0.26%
NI225 18910.5 18910.5 18826.9 0.22%